Mortgagees looking to take in lodgers

Rising house prices and an increase in interest and mortgage rates mean more people than ever before are both looking to rent a room or take in a lodger.

That is the conclusion reached by networking website Gumtree, who recorded a 38 per cent increase in the number of room-rent adverts on their website over the past six months.

In addition, research conducted by the site found that 30 per cent of mortgage holders said they could use the extra revenue generated by a lodger.

A spokesman for spareroom.com, a website catering to the room rental market, said that many people are now buying a house with the express intention of renting a room out ñ and some mortgage lenders are helping facilitate this.

He said: “There are a couple of mortgage lenders who factor that in – they will add a certain amount of rental income onto your multiplier before you take the mortgage out.”

According to a recent report from Alliance & Leicester, the rentals market is going to see growth of around 40 per cent by 2016.

© Adfero Ltd

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