According to a new report by LV= home insurance the number of people becoming lodger-landlords has nearly doubled in five years.
The research has shown the following interesting statistics:
Lodgers are on average over 30
20 per cent of lodgers are aged between 36 and 50, and the average age of a lodger is 31.
Rooms let quickly
The average spare room is let within eight days of it being advertised. The top places for letting a room in no time are:
- North East – just three days on average
- East Anglia – five days
- South East – six days.
Landlords can earn good money
The most expensive places to rent a room are:
- London – costs on average £345 per month
- South East – £278
- South West – £270
- Yorkshire and Humberside – £266.
Renting a room for extra income is booming
Lodger-landlords use the income to:
- Help with the bills (34 per cent)
- Increase their savings (26 per cent)
- Have more disposable income (26 per cent).
Letting rooms is commonplace
Matt Hutchinson, director of flat and house share website SpareRoom.co.uk, commented on the findings: “Lodging once conjured visions of Rigsby in Rising Damp, but it no longer holds that same stigma.
“Letting rooms is now commonplace for homeowners who otherwise couldn’t afford to cover their mortgage repayments, as well as those who enjoy the social benefits of sharing. UK homeowners are sitting on millions of empty bedrooms, which could alleviate the chronic shortfall of supply in the private rental sector.”
Tax relief figure out of date
Lodger-landlords can currently take advantage of £4,250 tax relief per annum under the Rent A Room Scheme, but Matt Hutchinson complains that this figure is out of date:
“The threshold hasn’t changed since the Tories raised it in 1997,” he said, “and it’s simply not representative of how rents and inflation have risen. If the allowance had risen in line with inflation the threshold would now be at least £6,500 per year. Meanwhile room rents have more than doubled over the past 17 years.”
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:
- Solicitor-approved Lodger Agreement
- Solicitor-approved lodger letters
- Solicitor-approved Lodge Application form
- Solicitor-approved Notice to Terminate a Lodger Agreement
- Taking in a Lodger Guide – our bestselling book outlining all you need to think about when renting a room, from insurance to tax, health and safety, and much, much more….
Get your agreement with your lodger in writing today.
Published on: August 17, 2014