Rent-A-Room could help with the mortgage bills
There are many people in the current climate that are struggling to pay their mortgage bills and monthly rent on their homes. For many the soaring cost of living coupled with wage freezes and benefit cuts has already impacted on their ability to meet these payments each month and if the base rate increases over the coming months things could become even more difficult financially.
Many of the people who are struggling are actually living in a property where there is a spare room, which is often filled with junk and forgotten about. However, many of these people could find that they are able to make use of the room and earn a substantial amount of money to pay towards their rent or mortgage each month as part of the Rent-A-Room scheme.
As part of the scheme, which was launched in 1992 by the government, homeowners and renters are encouraged to rent out their spare room to a lodger, and also allow them to use the shared facilities such as bathroom and kitchen. Under the scheme those taking in the lodger can earn up to £4250 a year in rental income without paying tax on it, and some industry groups are trying to get this increased to as much as £9000.
The average rent being taken in by those renting out a room to a lodger is now £4467, with the figure in London even higher at £6626. This can go a long way towards helping with the rent and mortgage even if the threshold does remain unchanged.
One official said: ‘Lodgers can get a much better address for their money while homeowners can use the income to take the pressure off their own soaring costs.’
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