Homeowners can overcome credit crunch with the help of lodgers

Posted under General by Jermaine

Lodgers could provide great relief to homeowners who are struggling to cope up with the rising costs of living. According to Abbey Mortgages, spare bedrooms in the UK homes could fetch £60 billion every year.
Abbey Mortgages’ data reveals that 18.2 million British homeowners have a minimum of one unoccupied spare bedrooms, which could be rented to overcome severe cash crunch. It claimed that a spare bedroom could fetch on an average £289 per month amounting to £3,468 each year as rental income.

Those renting their rooms could join the Government’s rent-a-room scheme and gain tax exemption on gross rental income up to £4,250 per year. This is an optional scheme under which a homeowner is entitled to receive income by renting a furnished room in the main or only home.

According to Abbey Mortgage’s figures, nearly 388,000 British homeowners have already been getting extra income by renting out their uninhabited rooms. A further 1.6 million are likely to make use of the attractive income alternative.

Director of Abbey Mortgages, Phil Cliff, considers this as the right time for taking in a lodger to raise extra funds for easing the cash crunch. He cautions homeowners to inform their lenders before renting a room.