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Struggling homeowners seek lodgers


Tuesday May 18th 2010

A record number of desperate homeowners without Mortgage Payment Protection Insurance (MPPI) are looking for lodgers to gain extra cash or risk losing their home, it has been revealed.

The number of adverts placed for lodgers on Spareroom.co.uk increased by 31% to 15,878 in the first quarter of the year compared to the previous three months, the highest level since the website launched in 2004. The figure is 10% higher than the corresponding period in 2009 and 68% ahead of the amount recorded in the first quarter of 2008.

Renting out a room has become a particularly strong trend since the beginning of the year, the group said. A record 5,763 adverts were placed on the website in January and 5,007 homeowners were looking for lodgers in April, some 17% higher than a year before.

People renting out a room in their home charge an average of £381 a month, rising to £598 in London. Homeowners do not have to pay income tax on the first £4,250 a year they receive through taking in a lodger under the Government's Rent a Room scheme.

Matt Hutchinson, director of Spareroom.co.uk, said: "Millions of people across the UK are struggling to pay off their debts and maintain their mortgage payments and it won't take much, even a small rise in interest rates, to tip them over the edge.

"And with unemployment still rising, and tax hikes to tackle the deficit on the cards, there are more difficulties ahead."

Mortgage Payment Protection - If you're looking for great value, high quality Mortgage Payment Protection Insurance with added benefits you've found it.

Copyright © Press Association 2010

If you're looking for great value, high quality Mortgage Payment Protection Insurance with added benefits you've found it.