Recent research indicates that homeowners in Birmingham, mainly first-time buyers, are sparking a trend by renting out their spare rooms to a friend or flatmate to help cover monthly costs, such as mortgage payments, utility bills and council tax.
A report published by dailymail.co.uk last month confirmed that living with another person can save the homeowner a significant £3, 500 annually. Conveyancing Solicitors in Birmingham believe that tough market conditions are the contributing factor to homeowners having to take such measures.
Ruth Williams, the sales manager for the Park Central development in Birmingham (Mason Way, Birmingham, B15 2EY) said:
“Homeowners at Park Central are increasingly easing the financial cost of living alone by taking in a lodger; particularly first time buyers who are wishing to get on the property ladder but who also want to enjoy living with friends. The recent increase in renting a room shows just how easy it can be to rent out a room, especially since our large living rooms and spacious kitchens offer the perfect communal area.
“By renting out a bedroom you are not committed to a standard length of tenancy so you have the added benefit of choosing how long the living arrangement suits you. Many homeowners at Park Central are enjoying living with a friend and are reaping the benefits of city centre living unhalted by financial restraints. ”
Solicitors in Birmingham are advising clients that are thinking of renting out a spare room to take advantage of the Government’s ‘Rent-a-Room’ scheme; under the scheme you can receive up to £4, 250 a year tax-free if you have a lodger living with you or are thinking about letting a furnished room in your home.
Advice about lodgers and subtenants
A subtenant will have a tenancy agreement with the owner of the property. As such their rights include exclusive access of one room in the property. The landlord must gain permission by giving notice to enter this space.
This does not apply to lodgers as a rule. The agreement between the lodger and landlord may vary but usually involves renting one room and may sometimes include additions such as rights in regards to the shared living space, laundry, cleaning or provision of meals.
Whether you are purchasing a property with the intention of sub-letting or intend to be the sole occupier of your dwelling, Fridaysmove can assist you in getting your transaction underway.
For more information, call us on 0330 660 0286.