Boost tax benefits for landlords with lodgers – plea to Chancellor
Summary
A flat-sharing service is urging the Chancellor to increase the UK Rent a Room tax-free threshold in the upcoming Budget, arguing that the current £7,500 limit is suppressing lodger supply. The article says lodger rooms are declining in the UK despite being cheaper than traditional rental rooms, and suggests a higher threshold could help unlock more underused bedrooms for the rental market.
Why it matters
Surveyors involved in residential lettings and valuation should note any policy change that could affect rental supply, affordability and the mix of accommodation available in the market. A shift in the Rent a Room scheme could influence landlord behaviour, room rental demand and local housing dynamics, particularly in higher-cost areas such as inner London.
Key points
- Calls for the Rent a Room threshold to be raised from £7,500 per year.
- UK lodger room supply is reported to be falling, including in inner London.
- Lodger rooms are described as cheaper than rooms let by traditional landlords.
- The article argues that a higher threshold could unlock more spare rooms without new construction.
- A 31-day minimum stay is proposed to reduce use of the relief for holiday lets.
This is an RPSA summary of a publicly available article. The full content remains with the original publisher.
