Lodgers on the up, helping hand to landlord insurance industry
As many homeowners are faced with the possibility of losing their homes, many are turning to alternative income methods to enable them to hang on to the roofs above their heads.
Britain's 16 million households could be sitting on a £6.29 billion lodger industry providing a welcomed injection into the housing economy which has been suffering of late; as the number of people seeking lodgings is also expected to rise dramatically in the next few years this may also be able to boost flagging landlord insurance industry.
The number of household owners who have turned to renting out a spare room and utilising the unused space in their homes has increased by 152 percent since June last year, reaching nearly 1 million landlords and becoming a haven for thousands of the country's lodgers.
Nearly 1000 families are evicted each week and welcoming a lodger into your home can be the life line needed to staying in your home and households can earn up to an extra £4,716 a year tax free through the government's 'rent a room' program.
Yet inviting a lodger into your home has the added complications of changing the inhouse family balance as relationships are disrupted when new members of the household arrive. It is also worth considering that new live-in landlords will have to share the other facilities in the home as well which some may feel encroaches on their personal space.
Becoming a sit-in landlord is obviously not everyone's cup of tea but many are in the younger age bracket between 25-34 year-olds, who take in lodgers to supplement incomes and reduce previous student debt and retired couples have also seen an uptake in renting a spare room to supplement retirement packages.
Insure My Let Property provides landlord insurance for prospective lodger landlords and let property owners wishing to protect themselves against the costly financial implications of accidental damage or legal liability claims.
August 17th 2009
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