Why should the income threshold be raised?

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From 1997/98 to 2005/06, average rents for resident landlords went up by 75 per cent. Projecting forward to 2009/10 would increase this to 113 per cent, which would be equivalent to a threshold of approximately £9000

The national average income from room rentals is £4,325 a year, with some areas much higher. This means that the average person renting out a room should complete a self-assessment tax return for, on average, an income of less than £100.00 (which costs the government £15.72 just to process)

At a time of economic difficulties the income a homeowner is able to generate from renting out a spare room can be the difference between financial survival and loosing their home. Currently the average mortgage arrears are £5525.00 and the average annual rental income from letting a spare room is £4,325.00. A fairer tax deal for those renting out a spare room will encourage more people to rent a room and avoid mortgage arrears.