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OTHER GUIDES & TIPS

Lodging becoming less popular despite HMRC tax break

The number of households taking lodgers has declined in recent years according to new research.

The number of homes taking one lodger is down 20 per cent on 2015 while the number of homes with two or more lodgers is down by a third.

Research by Total Landlord Insurance reveals that, even after the fall, lodgers contribute £57.5 billion a year to England’s rental market, with the average lodger paying £438 per month for a room, equating to an annual rental income of £5,256.

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Under the long-running Rent-a-Room Scheme, landlords living in the same property can earn £7,500 tax-free annually by letting a furnished spare room in their property.

Total Landlord Insurance says that while taking in a lodger appears relatively simple there are essentials to be aware of before taking the plunge. 

First, your mortgage provider, local authority and insurance provider need to be informed that a lodger will be moving into the home. If rental income generated is going to exceed £7,500 a year, HMRC also needs to be informed. 

Some insurance providers will cover up to three lodgers for no additional fee but it is considered important to get cover that includes liability insurance. This means you’re covered should your lodger try to sue you for an injury sustained within the home, via a faulty electrical outlet, for example. 

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    A stranger living in your own home --- NO THANK YOU.

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    I agree and if I was that desperate for some cash I'd sell a rental property, but for those with the space who can't work extra hours or get a better paid job, its surely an option?

     
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    Maybe this will take off with the "cost of living crisis"? After all its potentially a relatively easy way to make some extra money to cover bills etc, if you have the space.

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    Surely lodgers are b and b ?

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