We could be turning into a nation of landlords and landladies, according to new research. This last year has seen a huge rise in the number of homeowners renting out rooms to lodgers. According to a study by insurance provider LV, there are now more than 950,000 lodgers in the UK compared to 477,000 in 2011.
So why has the number of those opting to rent out a room in their home practically doubled in only a year?
The main and obvious reason, given by homeowners for taking in tenants is to boost their income. Up to £4,250 a year can be generated tax free under the Governments so-called rent a room scheme, for letting out a furnished room.
For many young professionals, the national average salary of £26,000 is not enough to afford a mortgage at the national average house price of around £160,000. Many in the Capital and other expensive areas are choosing to
rent a room during the working week and to live more cheaply elsewhere at other times. Conversely, many homeowners who have just managed to get on the housing ladder are choosing to take in a lodger to make ends meet.
With taking in lodgers now more popular than ever, there are legal guidelines to follow that can help you to avoid any pitfalls as a lodger or as a landlord.
Taking In a Lodger
Becoming a Lodger
Please note: This article is intended as guidance only and does not constitute advice, financial or otherwise. No responsibility for loss occasioned/costs arising as a result of any act/failure to act on the basis of this article can be accepted by Latimer Hinks. In addition, no responsibility for loss occasioned/costs arising as a result of any act/failure to act on the basis of this article can be accepted by the firm.