Homeowners take lodgers to cope with rate rise

Over a quarter of homeowners would consider having a lodger to help fight interest rate rises and boost their incomes.

A survey by Propertyfinder.com also found that 19% of mortgage borrowers would consider taking a lodger but don’t have enough space to do so. They estimate that as many as 26 million bedrooms lie unused in Britain.

In addition, if interest rates rise to 6% then the average mortgage repayment will have risen by £79 per month since the rates began rising; leading to borrowers needing to find new ways to supplement their incomes.

Warren Bright, chief executive of Propertyfinder.com, says “it’s a huge change to consider taking a stranger into your home so in practice, only a tiny proportion of homeowners would do it”.

“However, for many people, especially for younger homeowners, those who live alone or who don’t have children, it can be a very attractive option.  What’s more, there is tax relief available too”, he added.

Homeowners taking on a lodger can receive £4,250 of income tax free, equivalent to £82 per week.