Homeowners taking in lodgers

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by Kay Murchie

According to PropertyFinder, the 5 interest rate rises in 12 months has meant that many homeowners are struggling with higher repayments and are therefore looking for extra cash. Consequently, taking in a lodger is becoming increasingly popular and with 26 million spare bedrooms in the UK, it’s a great source of income.

The cost of borrowing has increased from 4.5% in July 2006 to 5.75% currently so those with variable rate mortgages are feeling the pinch.

Research from PropertyFinder has established that nearly a quarter of people are prepared to take in a lodger, with a further 19% saying they would be willing but do not have the space.

For young couples or those who live alone, this option can be appealing but the decision to take a lodger into a family home is an important one. The government is offering assistance for those who want to take in a lodger. The Rent a Room scheme offers £4,250 in tax breaks as an incentive if a spare room is rented out, the equivalent of £82 a week.

This can be a good way to deal with rising interest rates so those eager to go with this option should seek correct advice before doing so.