Experts reckon that 40% of Londoners will be renting by 2020, mostly as a result of the impossibly high cost of property in the capital. But with average rents currently around £1300 per month and a lack of affordable properties, it is becoming increasingly difficult for lower paid workers to find somewhere to live.
A Raw Deal
Londoners may pay more than anyone else, but they often get a raw deal. Rogue landlords are happy to part them from their cash in return for providing overcrowded rental properties that are not fit for human habitation. The London Rental Standard, otherwise known as a ‘Boris Badge’, aims to improve things, but in the meantime many tenants are turning to live-in rentals instead.
Flexible Living in the City
Renting a flat or room in a shared house usually involves handing over a shared deposit and a significant sum of money in rent every month. Tenants may also be tied into a one-year tenancy agreement and required to give one month’s notice if they want to leave. Live-in tenancies are far more flexible and a lot cheaper. Tenants have their own room and use of shared facilities. It won’t suit everyone, but if you find the right live-in landlady or landlord, it is a more affordable solution.
Landlords can rent a room and enjoy up to £4,250 tax free under the government’s Rent a Room scheme. But remember, earnings over this amount must be declared under the Self Assessment scheme or you could end up falling foul of HMRC.
