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Dramatic increase in homeowners renting out spare room

Tuesday, 22 April 2008 8:20 AM

There has been a 100 per cent increase in the number of homeowners renting out a spare room in their property over the last 18 months.

That is according to SpareRoom.co.uk, which finds that, as mortgage conditions deteriorate, homeowners are increasingly looking to lodgers to bridge any shortfall in funds.

"We are finding more and more people using their empty bedrooms for income to keep on top of their mortgage payments," said SpareRoom spokesperson Matt Hutchinson.

"It is a great way of generating extra cash and can be the perfect short-term solution while you wait and see what the housing market does over the next year."

In the past 12 months the website has seen the number of live-in landlords increase from 400,000 to 700,000, as homeowners either struggle to get a mortgage or seek to bolster their income.

"We have had so many enquiries about renting out rooms," continued Mr Hutchinson, "that we have set up an information site to help people prepare.

The SpareRoom information site can be found at www.lodgers.com.

"Things like the government's Rent a Room scheme - which allows people to earn up to £4,250 from their room before paying tax - are out there but not everyone's aware of them."

Mortgage borrowers in some areas of the UK have been struggling to meet rising costs, with the Financial Services Authority (FSA) warning 1.4 million homeowners will come off fixed-rate mortgages this year and may be forced to pay higher interest rates on subsequent loans.

More information on the government's Rent a Room scheme can be found here.

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