Homeowners missing out on £63bn worth of rent

14 2008
Students and professionals looking to rent a room look set to benefit from greater choice as growing numbers of homeowners look to cash in on their spare rooms and let them out.

That is according to a new report from Abbey, which has revealed that UK homeowners are currently missing out on a collective £63.4 billion by not renting out their extra bedroom, with at least 18.2 million homes having at least one uninhabited room.

With homeowners being advised that they can earn up to £4.250 a year tax free through the government's rent-a-room scheme, many more are likely to make such a move, particularly when it is considered that mortgage rates and utility bills are continuing to rise.

"With income being squeezed in so many ways, those looking to raise some extra money may find that their spare room could provide the answer," Abbey head of mortgages Phil Cliff explained.

"Demand for rooms is likely to be fairly high too and with the government providing tax free incentives for landlords, now is certainly a good time for those considering taking in a lodger."

The study also revealed that an estimated 380,000 homeowners currently rent a room out, with tenants often benefiting from lower-than-average rent.

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