The rising cost of running a household, together with stagnating wages and benefits are compelling an increasing number of people to rent out their spare rooms to lodgers. A report by a leading UK insurer has revealed that nearly 1 million homeowners have taken in lodgers this year, twice the figure for last year.
2000 property owners were surveyed in the report, of which a third said they were renting out a room. Household running costs such as mortgage repayments, council tax, gas and property insurance continue to put pressure on family finances, forcing many to look for new sources of income.
British Gas announced a 6% increase in prices very recently – above the Retail Price Index by some way. Such above-inflation rises are being seen in many other aspects of UK life too, including transport.
Other findings by the report included the fact that the average age of lodgers has gone up to 29, and that there are rising numbers of lodgers over the age of 45.
Experts say that people are looking for other sources of income, as bills and mortgage payments become more challenging to pay. Many home owners with an unused spare room are taking advantage of this untapped source of income.