Flatshare site SpareRoom has recorded an 89pc increase in households taking in a lodger between January 2021 and January 2024, crediting the spike to biting mortgage costs. Are you seeing more of this?

mortgages

Are more of your clients taking lodgers due to mortgage costs?

We have seen several clients taking in lodgers over the last 12 months. With the ability to earn up to £7,500 from rent without having to pay tax, some people are using this to cope with the increased cost of living. It tends to be single people of couples that accept lodgers, rather than families, with many of them seeing it as a social opportunity as well as a financial beneift. Some mortgage lenders will allow this in their affordability calculators too, so if additional finance is needed by the homeowner this can boost their prospects. 

Samuel Mather-Holgate

I have been working in financial services for twenty years. My specialism is later life advice, focusing on inheritance tax planning, pension advice and equity release. 

While there hasn't been a recent increase, there's been a noticeable uptick over 3 to 5 years in clients hosting lodgers. Capitalizing on the opportunity to earn tax-free rental income up to £7,500, individuals, mostly singles, are using this to manage the rising cost of living. Not everyone may opt for hosting lodgers, particularly for the long term, due to various reasons. Factors such as personal preferences, comfort levels with sharing living spaces, and individual circumstances can influence the decision. Some people may prioritize privacy and find the idea of having lodgers less appealing. Additionally, lifestyle choices, family considerations, and the desire for a stable living environment are variables that contribute to the decision-making process. In essence, while hosting lodgers can be financially beneficial, it may not align with everyone's lifestyle or preferences. Some mortgage lenders factor this income into their affordability calculations.

Jamie Alexander

Alexander Southwell Mortgages is a modern, independent mortgage brokerage built around one simple principle: good advice shouldn’t come with pressure, confusion, or unnecessary fees. We specialise in fee-free mortgage advice across the UK, helping first-time buyers, home movers, remortgages and more complex cases navigate one of the biggest financial decisions they’ll ever make, with clarity and confidence. We don’t believe in “one-size-fits-all” mortgages. Every recommendation starts with understanding the person behind the application. Your income, plans, concerns, and future goals matter just as much as interest rates. That’s why our advice is personal, considered, and always tailored, not rushed, scripted, or sales-led. Alongside expert, whole-of-market advice, we provide practical tools and straight-talking guidance to help you make informed decisions. From affordability checks and mortgage calculators to plain-English explanations of your options, we strip away the jargon and focus on what actually matters to you. What really sets us apart is how we work. We’re proactive, transparent, and easy to deal with. You’ll have direct access to experienced advisers.

Are more of your clients taking lodgers due to mortgage costs?

2 responses from the Newspage community
Copy all

Samuel Mather-Holgate

Independent Financial Adviser at Mather and Murray Financial

Jamie Alexander

Mortgage Director at Alexander Southwell Mortgages

2 responses from the Newspage communityCopy all

2 responses from the Newspage community
Copy all