Room at the inn..?
Posted on:
12
Dec
2011
by James Farmer
SPARE ROOM RENTAL RIFE IN THE SOUTH
- Those in the South West and South East most likely to rent out spare rooms
- Yet nine in 10 Britons missing income by not renting out spare rooms
- People in the East Midlands wasting the most spare rooms
Homeowners in the South of England are much more likely to generate extra income by renting out their spare rooms than anywhere else in Britain, according to new research(1) from Santander Mortgages. The findings reveal that a significantly greater proportion of people in the South West and South East rent out spare rooms than the national average. Those in the South West are most likely to rent out a spare room, with 14 per cent of those who have one choosing to rent it out to a tenant or lodger. This is followed by 11 per cent of those in the South East, compared to a national average of 8 per cent. However, Britons in many parts of the country are missing out on much needed income by not renting out their spare rooms. The findings from Santander Mortgages reveal that even though homeowners who do rent out a spare room generate an average of £182 a month from it, more than nine in 10 Britons (92 per cent) have decided they want their home to themselves. Those in the East Midlands least likely to fill the most spare bedroom space, with only 4 per cent of those with a spare room renting it out. Those in Yorkshire and the Humber are the next most reluctant to rent out a room, with only 5 per cent doing so, followed by 6 per cent of those in Wales. Homeowners who rent out their spare rooms by region
| Region | Percentage of homeowners with spare rooms who rent them out |
| South West | 14% |
| South East | 11% |
| London | 9% |
| North East | 9% |
| North West | 8% |
| West Midlands | 8% |
| East of England | 7% |
| Scotland | 7% |
| Wales | 6% |
| Yorkshire & the Humber | 5% |
| East Midlands | 4% |
| Great Britain | 8% |
Andy Smith of Santander Mortgages, commented: “Supply and demand of single room rentals is particularly high in the South East and South West, perhaps due to the higher cost of buying a property but also as a result of the higher rental incomes that spare rooms generate. “Renting out a spare room can make a real difference to how much money you have left at the end of the month, so at a time when many people are feeling the pinch, it would be worth considering it as an option for those with an unused bedroom. Anyone with a mortgage who is renting out a room should speak to their mortgage lender first, however, to check they aren’t breaching the terms and conditions of their agreement.” Instead of renting out their spare bedrooms, Brits are using them for a variety of non-money making purposes. More than half of homeowners with a spare room (54 per cent) use one as a bedroom for visitors, and over a third of those with a spare room (37 per cent) use it for storage. Using a spare room as an office is the next most popular use (35 per cent) while 11 per cent use a spare bedroom as a hobby room. Usage of spare rooms across Britain
| Region | Spare bedroom | Storage room | Office | Hobby room | Walk-in wardrobe / dressing room | Laundry room | Play room | Gym | Nursery |
| North East | 55% | 18% | 36% | 12% | 7% | 5% | 2% | 8% | 2% |
| North West | 52% | 38% | 39% | 14% | 10% | 6% | 5% | 5% | 6% |
| Yorks & Humber | 64% | 39% | 31% | 7% | 10% | 6% | 4% | 5% | 6% |
| East Midlands | 61% | 39% | 25% | 11% | 9% | 6% | 6% | 1% | 1% |
| West Midlands | 52% | 40% | 38% | 8% | 13% | 5% | 4% | 3% | 2% |
| East of England | 60% | 34% | 43% | 14% | 7% | 10% | 5% | 6% | 4% |
| London | 44% | 36% | 44% | 9% | 15% | 10% | 9% | 3% | 2% |
| South East | 52% | 36% | 36% | 6% | 12% | 8% | 3% | 3% | 1% |
| South West | 55% | 37% | 32% | 16% | 10% | 5% | 1% | 5% | 2% |
| Wales | 52% | 50% | 28% | 14% | 19% | 4% | 5% | 4% | 3% |
| Scotland | 56% | 34% | 31% | 13% | 5% | 3% | 9% | 2% | 1% |
* figures indicate percentage of those with at least one spare room who use one for this purpose Santander, the ‘Home of UK Mortgages’ has a two year fixed at 70 per cent LTV with a 2.99 per cent rate – ideal for movers. For first time buyers and movers with small deposits, Santander is also offering its competitive two year fixed at 90 per cent LTV with a 4.99%. Both of these products come with Santander’s Homebuyer Solution. The Homebuyer Solution offers borrowers the added benefits of a free standard mortgage valuation and £250 cash-back on completion.
Tags: IFA | income | mortgage | rental | santa | santander
