New figures show that nearly a quarter of a million homeowners have advertised for lodgers since the threshold for the Rent a Room scheme was upped in July 2015.
From tomorrow, homeowners can earn anywhere up to £7,500 per year tax-free by letting out rooms. This is a rise from the previous limit of £4,250.
Rises
Data released by spareroom.co.uk shows that since the announcement of the increases, 233,697 homeowners have actively advertised for a lodger. This represents an increase of over 5.2% on the same period twelve months ago.
In addition, the figures indicate that August 2015, a month after the announcement, was the busiest since records began in 2007. During the month 31,109 homeowners advertised for a lodger for their property.
Rent a Room rules changes tomorrow
Crisis
Matt Hutchinson, director of SpareRoom.co.uk, noted, ‘across the UK, room rents are rising by 5.5% a year. The abolition of tax relief on mortgage interest could force rents up even further as landlords look to cover costs, so this change to the Rent a Room scheme can’t come soon enough.’[1]
‘The UK is in the grip of a housing crisis nobody can see an end to. We’re not building anywhere near enough new homes so we have to make sure we’re using the ones we already have as effectively as possible. Incentivising even a small percentage of homeowners sitting on the 19 million empty bedroom in owner-occupied properties to let them out would do just that. That’s why we campaigned for this change for six years and are delighted to finally see it come into effect,’ Hutchinson added.[1]
[1] https://www.landlordtoday.co.uk/breaking-news/2016/4/rent-a-room-boosts-rental-supply
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