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Spare rooms 'worth £63bn'

15/08/2008

Homeowners in Manchester looking to make some extra cash should consider letting out spare rooms to lodgers.

According high street lender Abbey, homeowners are collectively missing out on £63.4 billion by allowing spare rooms to be idle.

A study by Abbey found that some 18.2 million homeowners have at least one uninhabited spare bedroom.

This could be let out to tenants at the national average of £289 a month, equating to £3,468 each year.

Phil Cliff, director of Abbey Mortgages, said that demand for rooms is likely to be "fairly high".

The government's rent-a-room scheme allows households to receive up to £4,250 tax-free gross rental income a year.

"With the government providing tax-free incentives for landlords, now is certainly a good time for those considering taking in a lodger," he added.

Rental income is likely to be welcomed by Manchester property owners struggling with mortgage payments, and rising food and fuel prices.