‘Rent a room’ allowance upped in Budget
By |Published On: 9th July 2015|

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‘Rent a room’ allowance upped in Budget

By |Published On: 9th July 2015|

This article is an external press release originally published on the Landlord News website, which has now been migrated to the Just Landlords blog.

Yesterday’s Budget brought with it a number of changes to the buy-to-let market. There was however good news for homeowners letting a room to lodgers, with the tax-free Rent-A-Room limit has been raised from £4,250 to £7,500.

Extremely helpful

Matt Hutchinson, director of flat and house share site SpareRoom.co.uk feels that Chancellor Osborne’s change to the scheme could have massive consequences for the limited supply of affordable rental homes.

‘In the midst of a housing crisis and with building levels behind all forecasted targets, it’s vital we make better use of existing stock and this will do just that,’ Hutchinson said. ‘All too often housing initiatives benefit a select few-but this helps millions of renters and homeowners.’[1]

He continued by saying that there are, ‘an estimated 19 million empty bedrooms in owner-occupied properties in England alone. Freeing up just 5% of those rooms would accommodate almost a million people-the equivalent of a city the size of Birmingham.’[2]

'Rent a room' allowance upped in Budget

‘Rent a room’ allowance upped in Budget

‘Encouraging people to take in lodgers could help them avoid repossession when interest rates rise and their mortgage repayments are adjusted. Lodger landlords can earn, on average, £8,335 per year in London, and £6,071 across the rest of the UK,’ Hutchinson concluded.[3]

[1] https://www.landlordtoday.co.uk/breaking-news/2015/7/rent-a-room-allowance-upped-to-7-500



About the Author: Em Morley (she/they)

Em is the Content Marketing Manager for Just Landlords, with over five years of experience writing for insurance and property websites. Together with the knowledge and expertise of the Just Landlords underwriting team, Em aims to provide those in the property industry with helpful resources. When she’s not at her computer researching and writing property and insurance guides, you’ll find her exploring the British countryside, searching for geocaches.

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