The booming lodger market shows no signs of slowing, according to flat and house share website SpareRoom.co.uk.
Over the past year SpareRoom has seen a 14 per cent increase in live-in landlords renting out rooms to lodgers.
According to SpareRoom director Matt Hutchinson, the fact that lodger income is tax-free up to £4,250 per year means renting out a room is one of the more appealing ways of generating some extra cash when times are hard.
He said: “And for homeowners struggling to meet their monthly mortgage repayments, taking in a lodger could be all that’s preventing them from falling into arrears.
“We expect to see increasing numbers of homeowners turning to renting out spare rooms as their fixed rate mortgage deals come to an end and they see their monthly mortgage payments rise substantially when they revert to their lender’s SVR.
“And with many homeowners facing prolonged periods stuck on their lender’s SVR because they don’t have enough equity in their properties to secure a new mortgage deal, having the extra income from a lodger could mean the difference between keeping or losing their homes.
“Homeowners that value their personal space could consider letting a room for weekdays only. It means you earn less but the benefits are that you get the house to yourself at weekends and you may not lose your council tax discount as your lodger will probably be paying at their primary residence.
“Over the past year alone, SpareRoom has seen a 155 per cent increase in people offering rooms on a Monday to Friday basis and the vast majority of these have been in London.
“This has not only been fuelled by homeowners looking to generate extra income, but also by the fact that London house prices are now way out of reach for many. Instead, people are buying outside London and commuting in for the working week.
“Just like buy-to-let landlords, homeowners who take in lodgers should have an agreement in writing so they have something to refer to if a dispute arises.”
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