Tenant demand for rooms has reached record highs, leading to increased competition among flatsharers, according to new findings from SpareRoom. The flatshare website reports that demand for rooms has reached record levels, with the Merseyside town of Bootle experiencing the highest demand.
In Bootle, where average room rents are below £500 a month, more than 12 people are reportedly competing for every available room. Other areas experiencing high demand include Richmond, where average room costs exceed £1,000 a month. Locations with high demand are often within commuting distance of major employment centres, rather than major cities themselves.
SpareRoom director Matt Hutchinson is calling on the government to increase the Rent a Room Scheme tax-free threshold. He stated that the prolonged high cost of living has split the flatshare market, leading to renters being priced out of shared living in major cities and others sharing for longer to save faster.
The Rent a Room Scheme currently allows homeowners and landlords to earn up to £7,500 a year tax-free from letting out furnished accommodation in their main home. Hutchinson suggests that encouraging more homeowners to rent out rooms could help ease demand in tight spots and curb rent rises.