A quarter of homeowners would consider taking on a lodger to combat interest rate rises and boost their incomes, according to Propertyfinder.com.
Some analysts are expecting a further interest rate rise to 6% when the Monetary Policy Committee meets this afternoon. Many have said a further rate rise before the end of the year is almost inevitable.
The survey also found that a further 19% of mortgage borrowers would consider taking a lodger but do not have enough space to do so.
According to Propertyfinder.com, if rates rise to 6% then the average mortgage repayment will have risen by £79 per month since rates began to rise and borrowers will be seeking to supplement their incomes.
Warren Bright, chief executive of Propertyfinder.com, says “it’s a huge change to consider taking a stranger into your home so in practice, only a tiny proportion of homeowners would do it.
“However, for many people, especially for younger homeowners, those who live alone or who don’t have children, it can be a very attractive option. What’s more, there is tax relief available too.”
Homeowners who do take on a lodger can receive an additional £4,250 of income tax free, equivalent to £82 per week. Propertyfinder.com estimates that as many as 26 million bedrooms lie dormant in Britain.
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