Lodgers could ease credit crunch

by Richard Kilner

Story link: Lodgers could ease credit crunch

Homeowners struggling with the belt-tightening amid rising fuel and food costs could be missing a trick, according to Abbey Mortgages.

The mortgage provider states that a grand total of £63.4bn could be earnt in rent per year if unused bedrooms were let out.

Furthermore, 1.6m families are considering renting out a spare room to lodgers as the strain on family budgets continues to increase.

At present 18.2m households have an unused bedroom, which would, on average, fetch £289 per month, equalling £3,468 a year.

Under the government’s rent-a-room scheme £4,250 could be earnt tax-free (gross).

However, if taking in a lodger is a matter of serious consideration it is always wise to check with the mortgage provider.

Most will allow the renting to occur with minimal fuss, though with some it can be more of a hassle.