Rent a Room rules change tomorrow
By |Published On: 5th April 2016|

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Rent a Room rules change tomorrow

By |Published On: 5th April 2016|

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

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.


Data released by 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

Rent a Room rules changes tomorrow


Matt Hutchinson, director of, 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]





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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