It’s no secret that rents across the UK are skyrocketing as the number of houses being built are outstripped by lots of house hunters looking for a place
to settle down. It’s leading to record house prices–
between 2012 and 2013, fewer houses were built than at any point in peacetime since the 1920s.
renters. A 2015 PwC report found that 5.4 million people were privately renting, compared to just 2.3 million 15 years earlier – and forecast this number to rise to 7.2 million
pension or afford that extra something you’ve been after. Here’s everything you need to know about boosting your income by renting a room.
rental market, Space Station recently undertook research into the top 20 universities in the UK, seeing how much, on average, private accommodation
close to the universities cost per week:
- London universities had the highest rents, with rents at Imperial College London being around £270 per week, University College London students paying
around £237 per week, and London School of Economics students paying £228 per week.
- Outside of the capital, in provincial cities where property prices aren’t as high as in London, rents are still high: in York, the average is £114
a week, at Warwick rents are £207 a week, Oxford rents are £153 a week, and students at the University of East Anglia pay around £103 a week.
- The lowest rents were found in Nottingham (£95), Leeds (£90) and Lancaster (£81) – less money, though according to International Student Calculator,
the average yearly contract period for private student rentals is 44 weeks, or £3,564 for homeowners in Lancaster.
There’s money to be made, and the government’s Rent a Room Scheme means that you can earn up to £7,500 per year, tax-free, for renting out furnished accommodation in your home (or £3,500 if you share the income with
another person such as your partner). That’s a huge boost to your usual tax-free allowances.
becoming a resident landlord aren’t particularly stringent, but there are some rules you have to follow to protect your tenants, and some important
ways you can protect your home too.
living with you.
the government’s guidance for resident landlords.
It goes into everything you legally must do before you let out part of your home.
you get a new tenant, you must give them copies of this guide and all of the certificates listed above.
electrician in and make sure furnishings (fabric furnishings in particular) are labelled and meet fire resistance requirements.
When dealing with deposits, legally you must put the deposit in a deposit protection scheme, or you can be taken to court by your tenant.
Lastly, you must remember to pay any income tax, capital gains tax and so forth on any money you make.
- whether or not it’s a tenancy or a licence to occupy (the latter would grant you entry into their room and them into your space)
- the start date and length of the tenancy – this can be indefinite
- the deposit amount and rent you charge
- responsibilities for maintenance
- the terms for ending the tenancy.
disputes without the need for messy and expensive court visits.