Landlord finds little tenant interest in lodger scheme

Published by 24publishing for 24dash.com in Housing and also in Central Government, Communities, Local Government

Just 12% of tenants surveyed by a Lancashire-based housing group said they would be prepared to rent out their spare room to a lodger.

Adactus Housing Group, which manages over 13,000 homes, wanted to know how many people knew about the Government’s ‘Rent a Room’ scheme and whether tenants would be interested in taking in lodgers ahead of next April’s housing benefit cuts for tenants with spare rooms.

Some 660,000 working age social tenants across Great Britain face cuts of £14 a week on average from next year as the Government looks to rein in welfare spending and free up larger homes for families on the waiting list.

The Government’s ‘Rent a Room’ scheme allows homeowners/shared owners and tenants to rent out spare bedrooms in their home which could see them pocket an annual rental income of up to £4,250 (£2,150 each if letting jointly) without having to pay tax on it. 

However, 50% of respondents who said they had a spare room said they would not consider a lodger; with 38% unsure and requiring more information. The results were also consistent with those tenants that do not have a spare room.  

Of the 32 participants who responded to the survey, just one in five were aware of the Government’s Rent a Room scheme.

Interestingly, only one in four surveyed said they had a spare room they could rent; when Adactus estimates that over half actually would be considered to have a spare room.

Although there isn’t enough interest in Adactus running its own scheme, it said it will promote the Government’s scheme and provide information to any of its tenants that may be interested in having a lodger.