Record number of UK homeowners take in lodgers in January

The website saw a massive spike in lodger numbers in early January, with almost 6,000 new homeowners renting out spare rooms by the end of the month. Consequently, January was a record month for new lodger numbers, up 15% on the previous record month, which was August 2011.

New lodger numbers in January were also up 83% on December 2011 and 22% higher than January 2010.
 
With families struggling to keep on top of their mortgage payments, utility bills and accumulating personal debts, renting out a spare room on a short or longer term basis has proved an easy way for homeowners to earn some extra and much needed income.
 
In fact, since the country went into financial meltdown, renting out a spare room has become an increasingly popular method for homeowners to boost income.

The UK’s lodger population has exploded in the past five years, and 2011 saw a record number of new homeowners taking in lodgers, up 14% on 2010, and more than double (120%) new lodger numbers in 2007. And with the average UK room rent £398 per month, and in London £677 per month, families can earn thousands of pounds a year this way.
 
With no sign yet of brighter economic skies, there is every chance that 2012 will see British homeowners continuing to take advantage of the tax free income they can generate from their spare rooms to help boost their finances and buffer them against rising living costs.
 
Matt Hutchinson, director, Spareroom.co.uk, comments:
 
“Millions of people across the UK will be struggling to pay off loans and credit card debts – and that’s on top of paying ever-increasing living expenses from mortgages to heating bills and the weekly food shop. If that isn’t bad enough, unemployment is still rising and the economy is showing little by way of improvement.
 
“It’s not surprising that the lodger population is expanding so rapidly as homeowners look for ways to boost their incomes. With the Government’s Rent A Room scheme allowing people to earn the first £4,250 per year without declaring any tax on the income, it is still one of the easiest ways to earn some extra cash.
 
“For some people the monthly income from a lodger will be the difference between losing their home and keeping it. In parts of the country, such as London, where demand for rented accommodation is soaring, live-in landlords are helping to ease the pressure on the rental market by providing an additional supply of rooms to meet increasing tenant demand.”