Number of people renting a room to a lodger has doubled since last year
Recession forces huge increase in rooms being rented to lodgers
October 11, 2012
The number of homeowners taking in a lodger has doubled in a year to 950,000. According to the financial services firm LV this figure has shot up from just 477,000 last year. The average age of lodgers is 29, however, 6% are aged between 45 and 54. More than a third of those surveyed responded that they have taken in a lodger to increase their “squeezed” incomes. Others said they are using the rent to pay their bills, such as council tax and heating bills, and pay down their mortgage.
Although mortgage rates are at an historic low, other factors are forcing people to tighten their belts. VAT has increased to 20%, millions of public sector workers are facing a pay freeze, and petrol and energy bills are soaring.
Currently homeowners taking in a lodger have a tax-free allowance of £4,250, but this has not been increased for 15 years, and is now out of date and should be substantially increased. We are campaigning to get this allowance raised to properly reflect the state of the market. To read more about this campaign click here.