Homeowners renting out rooms to survive recession

Monday, 18, May 2009 03:26

Five million homeowners have considered renting out their home or rooms to survive the current economic climate.

The research from Unbiased.co.uk, out today, found five million homeowners have considered becoming 'reluctant landlords', with younger homeowners hit hardest by the recession.

A third of those considering becoming landlords are debating whether to rent their property because they cannot sell it without making a loss in the current market conditions.

Richard Winder, spokesperson for the Unbiased.co.uk, said: "The boom years created a wave of have-a-go landlords attracted by the promise of rising property prices and cheap buy to let finance. Now we're seeing a new wave who may end up reluctant landlords because they need more money and don't want to sell up in the current market.

"Before taking the plunge into what is a serious financial and social commitment, we would advise homeowners in this position to speak to a whole of market mortgage adviser to see whether they could cut their existing repayments, as well as talking through the opportunities and potential pitfalls of becoming a landlord."

The research also highlighted it was younger homeowners who were hit the hardest by the issue, with a quarter of 18 to 34-year-old homeowners considering renting out their home or taking in a lodger.

Nearly 400,000 in the same age group already had a lodger.

Homeowners in London were the most likely regional group to consider taking in a tenant, and the reason most people gave for becoming a reluctant landlord was the unstable property market.