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More Brits renting out their spare rooms

More Brits renting out their spare rooms

Category: Mortgages

Updated: 08/11/2013
First Published: 08/11/2013

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Research by Santander has revealed that more Brits are choosing to rent out their spare rooms, with around 9% of homeowners now having a lodger compared with just 6% in 2011.

On average, a homeowner receives £164 a month for renting out a spare room, money which could be put to great use – 11% of respondents rent out a room because they need the additional income to help make mortgage payments or cover other outgoings, whilst 15% say they need the money to supplement disposable income.

In fact, renting out a spare room can cover an average of 27% of a homeowner's mortgage repayments each month, providing a valuable cash injection to those struggling to make ends meet.

Phil Cliff, director of Santander Mortgages, commented on the research:

"The 'rent-a-room' trend is clearly on the rise as the squeeze on the cost of living drives homeowners to look for ways to supplement their disposable income and cover their mortgage costs.
"There is clearly still plenty of scope for this market to expand, as homeowners with unoccupied rooms put their property to work by renting rooms to friends, family or tenants."

The Government's Rent a Room scheme could make it even more beneficial, enabling homeowners to earn up to £4,250 tax-free per year by renting out a spare room.

However, Mr. Cliff warned homeowners to check that renting out a room doesn't go against their mortgage agreement, adding: "We advise that before taking this step, anyone with a mortgage should speak to their mortgage lender to ensure they stay within the terms and conditions of their mortgage agreement."

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