With millions of underoccupied homes in the UK, Trinity Financial product and communications director Aaron Strutt says it’s “astonishing that successive governments have allowed the Rent a Room scheme to remain unchanged for so long”.

The UK government announced the £7,500 tax-free limit for renting out a spare room in July 2015, during former Chancellor George Osborne’s Summer Budget. It later launched on 6 April 2016. 

After various changes in the UK property market over the last 11 years, Strutt says the tax-free limits and the Rent a Room scheme needs updating.

According to SpareRoom’s rental figures, the average UK rent for a room in a shared house was about £600 per month in 2015.

The latest figures from the third quarter of this year shows average rent in the UK has risen to £769 per calendar month.

Strutt says: “The Rent a Room tax-free threshold has not been increased since 2016, despite the significant rise in rents and the growing pressure on the housing market.”

“With an estimated 28 million spare bedrooms across England, Scotland and Wales, it seems madness that so many rooms remain unused while people struggle to find somewhere affordable to live.”

Strutt explains: “A sensible, up-to-date policy that offers financial incentives alongside appropriate safeguards for both homeowners and lodgers could make a real difference.”

“Increasing the tax-free threshold could encourage more homeowners to take in lodgers, helping them with rising living costs while providing much-needed, more affordable accommodation.”

“Even making use of a small proportion of these spare rooms could ease pressure on local councils and the wider rental market.”

“Surely it makes sense to make better use of the housing we already have, rather than leaving millions of rooms empty while the housing crisis continues?”

Data published today by SpareRoom revealed that the number of rooms for lodgers in properties with live-in landlords dipped by 1.4% in the third quarter compared to the same period last year, but this type of room rental still accounts for 29% of the flatshare market.

The flatshare site estimates there are around 28 million empty bedrooms across England, Wales and Scotland.

It says that if 5% were made available to renters, this could provide accommodation for 1.4 million people.

SpareRoom has called on the chancellor to use this month’s Budget to increase the tax-free threshold under the Rent a Room scheme in an effort to encourage more homeowners to take in lodgers.