Tuesday, August 25, 2009
Category:
Home Improvements
Recent research from Abbey Mortgages has revealed that there are currently 981,000 lodgers in the UK.
This is a distinct rise of 152 percent on July 2008 when there were just 388,000 lodgers. Potentially, there is £6.29 billion lodger income and 16 million empty bedrooms in the UK.
Three percent of homeowners are adding a little extra to their income by renting out spare rooms and an additional 3 percent of homeowners say that they would consider having another lodger. Those who do have a lodger are earning an average of £4,716 a year in rental income.
In the research conducted by Abbey Mortgages, it was found that 16 million UK homeowners have a minimum of one spare room which if let could earn £6.29 billion per annum in rent. Regionally, 6 per cent of homeowners in London were most likely to rent a room to a lodger, while just one percent in Scotland and Northern Ireland would do so.
Nici Audhlam-Gardiner, Director of Alliance & Leicester Mortgages, commented: "If you have a spare room that's gathering dust, its worth considering a lodger and earning £4,716 a year. Not only will you have some extra money each month but most of it could be tax-free too. Those homeowners who still have spare rooms to rent are collectively missing out on over £6billion a year.
"For homeowners who are not so keen to take in a lodger, A&L offers some market leading rates including a best buy tracker at 2.95 per cent, to reduce the monthly mortgage bill."
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Lodgers who have recently become homeowners, and who would like to make some home improvements to their new property, could consider financing these with a secured loan. Secured loans for
home improvements could be used to pay for straightforward home improvement projects such as refreshing paint throughout, and replacing older kitchens and bathrooms with newer versions. Other new homeowners might have bought a smaller property which requires enlarging. A secured loan could also help fund larger scale space creating home improvements such as adding an extension or conservatory.
