The Raise the Roof campaign was launched to urge the UK government to revise its Rent a Room scheme. The scheme allows live-in landlords to claim up to ?4,250 per year tax free; this figure halves to ?1,125 if landlords let jointly.
In the light of the recovering rental market and rising rates, the campaign is asking for a revision of the tax-free amounts. The current rate has been at the same level since 1997.
The rent-a-room website SpareRoom.co.uk, supported by housing charity Shelter launched the campaign, arguing that the 13-year-old scheme is no longer viable in terms of tax-free rental amounts.
Campaigners also warned that homeowners will simply stop renting rooms if they perceive the tax deal as unviable. The campaign directors therefore wrote to the new housing minister Grant Shapps to request a raise of the limit to ?9,000.
Since the launch of the Raise the Roof campaign in November 2009, the average rent in the country rose by 5.8 per cent. In addition, The Guardian reported that the average annual room rent is currently ?4,576, while the figure is ?7,176 in London.
This translates to 60 per cent of rented rooms nationally and 92 per cent in London, where the rental income is over the tax threshold.
Matthew Hutchinson, founder of Raise the Roof and director of SpareRoom.co.uk, said: ?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.?
