Latest on the blog

Monday 13 July 2015

Increase in Tax Relief for Renting Out a Room in London

Great news for our London hosts! Just last year we reported on the tax-free £4250 you could earn in London by taking in a lodger,and here we are now with a super update.

You can now earn up to £7500 tax free when you sublet your place!

That means that FlatClub hosts can earn nearly £10k before being subject to any taxation on that earned income.

The UK government is taking a clear stance in support of medium term rentals - such as those we specialize in on FlatClub. Last year saw an easing of the restrictions on subletting for tenants, and now with this news we feel confident that the UK government is on our side as the marketplace for medium & short term rentals.

Why Encourage Short & Medium Term Tenancy Now
The reasoning is sharp: in a rental market that is as in-demand as London, more people are choosing to both rent out their spare rooms, and to rent those spare rooms, as an alternative to costly mortgages or long-term contracts with estate agents. When something is in scarce supply as accommodation is in London, incentivizing those that have it to share it is a clever way to go.

In addition, as mortgage rates continue to trend upwards, this extra tax-free income will also prevent many homeowners & landlords from struggling against the current.

Who Can Take Advantage of This?
Well, anyone! Specifically though, this new tax allowance is great news for “empty nesters”, those who own a family-size home but whose adult children have moved out. It’s also good news for people who are in-and-out of their own flats frequently, such as those who commute further afield for work or take on consultation jobs.

How Can I Start?
First thing, take a look at our informative page for FlatClub Hosts. That will get you started with some base information, and you can get in touch with our host onboarding team to help you get your spare room or flat up and listed on our site. We also offer free professional photography, scheduled to suit you - during daylight hours, of course.

FlatCub is particularly suitable for this news, because our bookings average far longer than other sites that specialize in ‘holiday rentals’. A booking on FlatClub is generally about 30 days or more - you’ll earn that £7500 with less hassle on FlatClub than anywhere else.

We know that this is exciting news for people with a spare bedroom - you can now turn that property into £7500 tax free income. We want to help make this a reality for as many people as possible, so get in touch with us ASAP and we can get you listed on the number one marketplace for medium term bookings.
Categories: ,