THE number of homeowners looking to bring in lodgers will sky-rocket over coming months, a property expert has predicted.
According to recently published data 12,573 people registered as lodger-landlords so far this year.
That compares to 8,015 during the same period in 2021.
And Jonathan Rolande, from the National Association of Property Buyers, says he expects the number to soar even higher in 2024.
Mr Rolande said: “With ever-increasing demand for property, rents are rising fast, and many otherwise affordable homes are out of reach for renters, especially those just starting out.
‘That’s why many are now looking to share accommodation, moving in with homeowners as lodgers.
“Not only does it keep costs down, it fixes them too – utilities are usually included within the rent meaning there are no nasty shocks when the bills roll in at the end of the month.
“I can only see the number of people looking to go down the road of inviting in a lodger increasing next year. We could see record numbers of people entering into the arrangement, especially if the cost of living crisis continues.”
Mr Rolande said that for both the lodger and for the homeowner there are a number of things to consider:
Security. Opening your home to a stranger carries risks, they will need a key to the home and will have access to personal information such as letters and bank statements. Although steps can be taken to reduce the risk of anything untoward happening, the chance is there.
Privacy. Sharing facilities with somebody can lead to concerns about privacy.
Personal safety. It is vital to thoroughly screen and scrutinise your prospective lodger, and lodgers must do the same with their future landlords. Issues are very rare but still possible. Additional care must be taken if there are children or vulnerable people in the home.
Tax. £7500 a year can be earned without having to declare the income but that threshold hasn’t changed for many years – it is easy to exceed this, especially if more than one room is rented. Exceeding £7500 will result in additional paperwork and a tax bill.
Utilities. As there is no way to work out additional costs for gas, electricity and water, many landlords get a nasty shock when the bills come in. Some landlords agree the number and length of showers with tenants before they move in, others feel this is going too far.
Insurance and mortgage. It’s vital to check with your mortgage company and insurer that renting a room is within the rules.