The property tax level for private landlords who rent out rooms in their properties has become "outdated", according to the communications director at SpareRoom.co.uk.
Matt Hutchinson said that in order for the rent a room scheme - which he termed a "great idea"- to continue successfully, the government must raise the tax threshold in line with the growth in rents over recent years.
His comments follow a statement from the National Landlords Association, which called on policymakers to raise the income tax threshold on rental income from lodgers from £4,250 per year to £9,000.
The scheme has been in place for 12 years, without any change to the tax threshold, despite a significant increase in the UK's average rent levels in that time.
Mr Hutchinson remarked: "At the moment, with so many people facing arrears and repossessions and just worried about finance generally, renting out a room is often the single biggest step people can take to bring in a bit of extra income."
Written by John Weeks
Related posts: