Letting Out A Room Is Increasingly Popular

The Times today reports that more and more householders are taking in a lodger to earn extra cash during the recession. Figures show that from July 2008 to July 2009, the number of lodgers has risen by a massive 152% – there are now just under a million in the UK.

It really comes as no surprise that people are looking to rent out a room – after all, hundreds of thousands of homeowners are facing financial difficulties thanks to high mortgage costs and job uncertainty. Under the governments Rent A Room scheme, you can earn up to £4,250 a year tax free from renting out a room so it’s the perfect solution for lots of people. It seems that householders set their rental costs accordingly – the average rent from a lodger according to Abbey is £393 per month, which comes to £4,716 per year. This would certainly go a long way towards helping with a big mortgage!

Interestingly, research by Spareroom.co.uk shows that the average age at which homeowners take in a lodger is 25-34, and that most live-in landlords are single. It looks like first-time buyers are the ones most likely to seek financial help in this way. Of course, finances aren’t the only reason to take in a lodger – if you want company there are plenty of people just like you, looking for a place to call home!