10 Nov

NLA calls for Rent-a-Room rise

NLA calls for Rent-a-Room rise

The National Landlords Association (NLA) is calling on the government to increase the threshold in the Rent-a-Room scheme.

Despite rental rates across the UK more than doubling over the past ten years, the limit at which landlords are exempt from income tax has not changed since 1997/98.

Currently, the tax threshold stands at £4,250, but the NLA is campaigning for this to more than double to reflect changes within the market.

Research carried out by the Spareroom website found that 60 per cent of rooms in the UK are rented for more than £4,250 per year, while 78 per cent of homeowners could cover their average mortgage arrears by taking advantage of the scheme.

The NLA argues that its campaign to raise the threshold to £9,000 could be beneficial in terms of reducing repossessions as well as increasing the level of affordable housing stock.

David Salusbury, chairman of the NLA, said: "We are sending a clear message to the chancellor: a fair deal for those looking to rent a room by increasing the tax-free threshold will help homeowners and the economy."

His comments come as first-time buyers are rushing to purchase properties before stamp duty is re-introduced on properties valued at £125,000 or higher.

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