"We expect to see the number of people taking in lodgers to continue to increase over the coming months, maybe years"
- Matt Hutchinson - SpareRoom
Renting out a spare room in your home has been a popular way to make extra money for decades, and has been made simpler thanks to the Rent a Room Scheme tax relief, which allows you to earn up to £7,500 per year tax-free from letting out furnished accommodation in your home.
The average UK lodger pays £98 per month less than the average room rent. In London, it’s £129 per month cheaper to rent as a lodger. Annually that’s a saving of £1,176 (UK) and £1,548 (London).
Market analysis from SpareRoom has picked up a surge in homeowners taking in a lodger to help with soaring bills and mortgage payments. According to the data, there were 12,573 new lodger landlords in Jan-Oct this year, compared to just 8,015 in Jan–Oct 2021 – an increase of 57%.
Matt Hutchinson, director of SpareRoom, comments: “More and more people will be looking at ways to make extra money over the coming months due to increased mortgage rates and living costs, especially as we enter winter where energy bills will be higher. We expect to see the number of people taking in lodgers to continue to increase over the coming months, maybe years."
