This is according to new research from flat and house-share website SpareRoom.co.uk which analysed data from its 2.2 million registered UK users.
It found the South West of England has seen the greatest rise in live-in landlords over the past two years, with cities in Devon and Cornwall featuring prominently in the list of top locations for people renting out their spare rooms to lodgers, filling three out of the top five spots.
The Cornish city of Truro has seen the biggest overall increase in the number of new live-in landlords, with a rise of 89% over the past two years, as homeowners rent out their spare rooms in order to generate some extra cash in difficult financial times.
On average, house prices in Truro are around 8% more expensive than the rest of Cornwall, and according to recent figures from the Bank of Scotland, house prices in the city have risen 121% in the last ten years. Truro also attracts a large number of commuters, with the number of jobs in the area outstripping the population.
According to SpareRoom, this has fuelled a trend amongst landlords to offer their spare rooms on a Monday to Friday basis, to satisfy demand from those wishing to avoid the busy commute.
Also appearing near the top of the list are Exeter and Taunton, which have seen live-in landlord numbers increase by 84% and 65% respectively since 2009. Plymouth, also in the West Country, features in seventh place with a 57% rise in live-in landlords while Bath, in Somerset, which has seen a 49% increase, makes the top 20 list.
Aberdeen, Scotland’s third largest city, appears in second spot in the list, with live-in landlord numbers up 87% in the past two years.
Surprisingly, live-in landlord numbers in London have risen just 22% in the same two-year period, but this is largely down to lodgers already being a feature of the rental market in the capital long before the credit crunch hit – hence the steady rather than dramatic rise in numbers.
Outside central London, there has been a noticeable increase in live-in landlords as the credit crunch gripped the nation, with many more homeowners becoming aware of the tax benefits of renting a spare room.
Matt Hutchinson, director of SpareRoom.co.uk, commented: “The South West has always been one of the most desirable locations to live, and this has been reflected in recent years by an increase in property prices, driven in particular by those buying second homes.
“However, it does appear that the residents of Truro may be feeling the financial pinch more than most, with a massive 89% rise in the number of homeowners taking in a lodger to help bring in a little extra cash.
“The rise of the lodger has been a feature of the financial mire that the UK finds itself in, with cash-strapped homeowners trying to find ways to boost their incomes to pay escalating bills. What’s clear from these figures is that renting out a spare room continues to be one of the most popular and simple ways to make some extra cash, and with the economic climate still in a state of ill health, live-in landlord numbers are likely to continue rising. After all, is there an easier way to make a tax free income of £4,250 a year?
“Interestingly, we have also seen a noticeable rise in people advertising their spare room on a Monday to Friday basis, targeting professionals who need a base for the week before going back home on the weekend.
“This set-up is particularly popular with homeowners who still want their privacy on the weekends, and are not as interested in the social benefits of taking in a lodger.
“From the lodger side, renting a room during the weekdays is often a lifeline for those who need to move for work but don’t want to – or can’t – sell their house.”
