The National Landlords Association (NLA), the leading representative body for private-residential landlords in the UK, is calling for the ‘Rent-a-Room’ scheme threshold to be increased for the first time under the current Government.
Rental income from lodgers is exempt from income tax up to a threshold of £4,250. This threshold has not changed since 1997/98, even though rents in most parts of the country have more than doubled.* ‘Rent-a-Room’ was originally set up to encourage people to rent out spare rooms, but given the significant rent increases over the past 12 years the value of the benefit has dwindled.
Sixty per cent of rooms in the UK are rented for more than £4,250 per year. In London this figure rises to 91 per cent. Even more startlingly, 78 per cent of UK homeowners could cover the average mortgage arrears by renting out a spare room.*
The NLA is supporting the ‘Raise the Roof’ Campaign which is lobbying for a tax-free threshold increase to £9,000 per year. Not only could the increase help to prevent repossessions but it could add much needed affordable housing stock.
David Salusbury, Chairman, NLA, said:
“There is no way of telling just how many potential ‘live-in’ landlords are not letting out their spare rooms because of the hassle-factor of having to complete a self-assessment tax form. Today we are sending a clear message to the Chancellor: a fair deal for those looking to rent a room by increasing the tax-free threshold will help homeowners and the economy. It is a win-win situation that helps both parties and it is about time the exemption reflected the increase in market rents.”
* Data on residential landlords by www.spareroom.co.uk (Matt Hutchinson, 0845 644 4029)
All media enquiries to:
Steven Hilton
Media Relations Manager, NLA
Email: steven.hilton@landlords.org.uk
Tel: 020 7840 8906
Mob: 07508 031 084
Notes to Editors:
The National Landlords Association (NLA) exists to protect and promote the interests of private residential landlords. With over 18,000 individual landlords from around the United Kingdom and over 90 local authority associates, it provides a comprehensive range of benefits and services to its members and strives to raise standards in rented accommodation. The NLA seeks to safeguard landlords’ legitimate interests by making their collective voice heard by local and central government and the media. The NLA seeks a fair legislative and regulatory environment for the private-rented sector while aiming to ensure that landlords are aware of their statutory rights and responsibilities towards their tenants.
