Number of live-in landlords at historic high

Lawpack on October 27, 2026

According to data released by flatshare platform SpareRoom, rooms provided by live-in landlords (homeowners renting out spare rooms to lodgers) made up 34% of total UK flatshare supply during the third quarter of 2026. The total number of live-in landlords remains at a historic high compared to a decade ago.

The research has shown the following interesting statistics:

Room rents reach new highs

SpareRoom’s rental index for the third quarter of 2026 reported that the average UK room rent reached £769 per month, a new record.

Average rents vary considerably by region. The latest figures include:

  • Greater London: £932 per month
  • South East England: £709 per month
  • East Anglia: £687 per month
  • South West England: £689 per month
  • Yorkshire and the Humber: £569 per month
  • North East England: £554 per month

These are average advertised rents, including bills, rather than guaranteed earnings for individual lodger-landlords. Actual income will depend on the location, size and condition of the room and the facilities offered.

Renting a room for extra income is booming

According to a recent lodger-landlord survey, the primary motives for taking in a lodger have become much more critical to daily financial survival: 
  • Meeting Day-to-Day Costs: 51% of modern lodger-landlords rent out a room simply to meet baseline everyday expenses like food shopping and utility bills.
  • Covering the Mortgage: 25% now directly rely on their lodger’s rent to keep up with their increased monthly mortgage repayments.
  • Supplementing Retirement: 28% use the extra stream of income to actively save for retirement or top up an existing pension.
  • Paying Down Debt: 12% are utilizing the cash injection specifically to pay off alternative outstanding debts or loans. [1, 2]

Tax relief for lodger-landlords

The government’s Rent a Room Scheme allows eligible resident landlords to earn up to £7,500 per tax year tax-free from letting furnished accommodation in their only or main home. The threshold is reduced to £3,750 where the qualifying income is shared with another person.

If your gross receipts exceed the threshold, you may need to complete a tax return. You can generally choose between the Rent a Room Scheme and the normal method of calculating taxable rental profits, depending on your circumstances.

The scheme does not apply to every room-rental arrangement; for example, the accommodation must generally be furnished and form part of your home, rather than a separate self-contained flat.

Protect yourself with a written lodger agreement

Before your lodger moves in, it is important to agree on the terms of the arrangement in writing.

A lodger agreement can set out:

  • The amount of rent payable and when it is due.
  • Which rooms and facilities the lodger can use.
  • Responsibility for household bills and other costs.
  • House rules, including arrangements for guests and shared spaces.
  • The notice required to end the arrangement.
  • Any deposit taken and the circumstances in which deductions may be made.

A written agreement helps both parties understand their rights and responsibilities and can reduce the risk of misunderstandings or disputes.

You should also consider checking references, agreeing an inventory of any furniture provided and ensuring that your insurance arrangements are suitable.

Help from Lawpack

We produce a range of lodger titles to help you rent out your room easily and protect yourself and your property by getting the contract in writing. These are as follows:

Get your agreement with your lodger in writing today.