click here

rss RSS Feed

 

Homeowners sitting on £63.4 billion of lodger loot

Homeowners wishing to make their property work for them in the credit crunch could rake in a whopping £63.4 billion extra each year by renting spare bedrooms out to lodgers, according to research by Abbey Mortgages

Indeed over 18.2 million homeowners have at least one currently uninhabited spare bedroom. And with the average monthly asking price at £289 per month, Britons with a spare room could raise £3,468 extra each year. What's more, those that join the Government's rent-a-room scheme, can receive up to £4,250 tax-free ‘gross' rental income a year (receipts before expenses). The Rent a Room scheme is an optional exemption scheme that lets you receive income from renting furnished accommodation in your only or main home.


Abbey Mortgages' research also showed that some 388,000 homeowners are already renting out one of their spare rooms, which is netting them combined £1.1 billion annually. And a further 1.6 million are seriously considering doing so - worth a potential £5.6 billion.


However, if you're a mortgage payer, Abbey Mortgages points out that while the vast majority of lenders allow you take in a lodger with the minimum of hassle it's always best to check both your mortgage lender's and insurer's terms and conditions.


Phil Cliff, director of Abbey Mortgages, commented: "With income being squeezed in so many ways, those looking to raise some extra money may find that their spare room could provide the answer. Demand for rooms is likely to be fairly high too and with the Government providing tax free incentives for landlords, now is certainly a good time for those considering taking in a lodger."

PrintPrint Article

Date: 13th, August, 2008

Mortgage Finder provided by mform
First time buyer
mform

What Mortgage have partnered with mform, the UK’s leading mortgage comparison website, to help you find the best mortgage for you. Compare direct mortgage products from lenders and apply directly through mform.
Remortgaging
Mortgage Finder provided by The Buy to Let Business
Buy to let
buy2let

Do you need help looking for the right mortgage? Let someone else do the hard work for you.
Utility Finder
Utilities

Try our free and unique 100% impartial energy search engine which allows you to compare the prices of all gas and electricity suppliers and find the very best deal for your home.

ADVICE TO READERS

While this website is checked for accuracy, we are not liable for any incorrect information included. We recommend that you make enquiries based on your own circumstances and, if necessary, take professional advice before entering into transactions.

 

Sign up for free news e-mailer

Third party contact:

House price search

house price index

Enter your postcode here to find out how much your property is worth, based on Land Registry data.

Mortgage Calculator - How much can I borrow?

Enter the following information to calculate the amount you can borrow.

First Income:

Second Income:
 
click here