Here's what the media are saying about Raise the Roof

Calls for better tax breaks for taking in lodgers

Homeowners keen to make extra cash by renting out a spare room should get improved tax breaks, according to campaigners.

Raise the Roof says that while up to £4,250 a year can be earned tax-free, this threshold has not been reviewed since 1997.

The campaign, run by rent-a-room website SpareRoom.co.uk and supported by housing charity Shelter, has called on housing minister Grant Shapps to raise the limit to £9,000. Matt Hutchinson, director of SpareRoom.co.uk, said: "Since the coalition Government was formed, we have been in contact with the housing minister who has promised to look at and respond to the information we've sent him.

Since we launched the Raise the Roof campaign in November, average room rents have risen significantly and are likely to continue to rise.

"Renting out a room has become a vital source of additional income for many homeowners but with average room rents in many areas of the country now outstripping the rent-a-room tax break, people may be dissuaded from going down the lodger route if they have to fill in a complicated self-assessment tax return."

Rent-a-room landlords 'should be given £9,000 tax exemption'

Raising £4,250 threshold for homeowners with lodgers would help to ease the housing shortage, say campaigners

Homeowners who take in lodgers should get better tax breaks as the country's housing shortage continues to push rents higher, a campaign group has advised the government.

Under the Rent a Room scheme, live-in landlords can claim £4,250 rent a year tax free (£2,125 if letting jointly), but this figure has stayed at the same level since 1997. Now Raise the Roof, the campaign aiming to get a fair deal for homeowners renting out a room, has written to new housing minister Grant Shapps, urging him to raise the limit to £9,000.

Since the campaign, run by rent-a-room website SpareRoom.co.uk and supported by housing charity Shelter, initially launched to target the previous government last November, the average rent has increased by 5.8%. Now, the average annual room rent is £4,576 and £7,176 in London. This means 60% of rooms are over the tax threshold nationally and 92% in London.

Matthew Hutchinson, director of SpareRoom and founder of the Raise the Roof campaign, says many potential landlords could be put off by having to fill in a self-assessment tax return if rent outstrips the tax break, especially if this is only by a few hundred pounds.

"As rents will only continue to rise it becomes ever more important to address the tax threshold or people will simply stop renting out rooms," he says.

"With house prices increasing faster than salaries, and mortgages difficult to get without a substantial deposit, the private rented sector will be vital in providing housing for hundreds of thousands, if not millions, of people, so we must act swiftly to ensure renting out a room is a real option that is supported by this government."

A recent poll of 1,326 UK renters by SpareRoom found 89% were flat-sharing because they couldn't afford to buy, with 33% of those saying they were unable to see themselves ever getting on the housing ladder.

However, Judy Niner, founder of website MondaytoFriday.com, which brings landlords and lodgers together, says that while she thinks it would be great if there were an increase in the tax-free threshold, it is unlikely to happen soon. "This is still a good tax break and without it there would not be as many rooms rented out during the week, and this would really impact on the mobility of many UK workers," she says.

Both SpareRoom and MondaytoFriday.com have seen the number of people registering with them for weekday rentals rise over the last two years. "This appeals to people who have a spare room in their house but do not want to share their home all the time," says Niner. "For the people lodging, it's much nicer than having to stay in a soulless hotel and often allows them to get a room in a much nicer area than they would normally be able to afford."

Landlords and lettings agents were given some good news last week when the government announced it would not press ahead with regulation of the sector.

The previous government had intended to introduce a national register of landlords, regulation of letting and managing agents, and compulsory written tenancy agreements.

Nick Harvey, MP for North Devon, is pleased to be supporting the Raise the Roof Campaign, launched by flat and house-share website Spareroom.co.uk. The campaign, also supported by Shelter and the National Landlords Association, is calling for improved tax breaks for householders who rent out spare rooms under the Government's Rent a Room Scheme.

Nick says, "This is an excellent initiative at a time when many households are struggling to make ends meet. The aim of the Raise the Roof campaign is to improve awareness of the Rent a Room Scheme and at the same time lobby the Government for a fairer deal for the hundreds of thousands of householders who benefit from the scheme, the value of which has slowly been eroded over time."

Through the Rent a Room Scheme, householders can receive an amount of tax-free income from renting out a spare room. The tax-free threshold currently stands at £4,250, and the Raise the Roof campaign is calling for the Government to raise this threshold to £9,000 per annum, which will encourage more people to take in a lodger and help many avoid arrears and repossession.

Matt Hutchinson, Director, SpareRoom.co.uk, comments: "The UK is suffering from a housing shortage whilst, at the same time, thousands of lower and middle income households are currently struggling financially. The Rent a Room Scheme offers a simple solution, providing a supply of affordable rented accommodation, and at the same time, and especially in this current economic climate, giving many households a financial lifeline.

"In order for the Rent a Room Scheme to encourage more people to take in lodgers, the incentive to do so needs to move with the times. By raising the threshold, which hasn't been increased since 1997, the Government is sending out a clear message, that renting a spare room is a positive option that benefits both householder and tenant."

Property market insiders are calling for the Government to help homeowners struggling to meet mortgage repayments by renting out spare rooms.

The National Landlords Association (NLA) and spareroom- com say that the Chancellor, Alistair Darling should raise the amount of money that homeowners can earn from renting out a room before tax is due from £4,250 to £9,000 a year. The tax threshold for renting out a room has not gone up since December 1997.

"The scheme has proved a lifeline for many homeowners," said Matt Hutchinson, a director of spareroom.com. "But with rent increases over the past decade, its value has been slowly eroded. With nearly 60 per cent of room rentals in the UK over the rent-a-room tax-free threshold, this reform can only be beneficial."

Three-quarters of people in arrears could cover their debts by taking in a lodger, said the NLA. "There is no way of telling how many potential 'live-in' landlords are not letting out spare rooms because of the hassle of the self-assessment tax form," said David Salusbury, the NLA chairman.

Website Spare room.co.uk wants the Government to raise its rent-a-room tax-free threshold from £4,250 to £9,000. The site claims that, with more than a million lodgers in the UK, many households could benefit. The threshold hasn't increased since the tax perk was introduced in 1997

The Government is being urged to increase the tax-free allowance given to people who rent a room to a lodger as it has remained static for over a decade.

The £4,250 annual threshold below which you pay no tax has been in place since 1997. Campaigners say in that time typical rents have risen by 113%.

This means far more will have to pay tax on their rental income. The website, Spareroom.co.uk, which is spearheading the campaign, wants the limit raised to £9,000.

It says almost 60% of people who rent out a room in their home receive income above £4,250, rising to 91% in London.

Matt Hutchinson, director of house share website Spareroom.co.uk, said: "The Rent a Room scheme has proved a vital lifeline for many home owners but with rent increases over the last decade its value has been slowly eroded over time.

With nearly 60pc of room rentals in the UK over the threshold this reform can only be beneficial for the housing market."

A little plug for the Raise The Roof campaign. What's it about?

Since 1997 (i.e. under the current government) no change has been made to the income threshold of the Rent a Room Scheme - the threshold at present is £4,250 a year; the campaign would like to see this rise to £9,000 a year.