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Number of lodgers jumps to one million amid recession
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The number of lodgers has increased by a quarter in three years to almost one million
as people struggle to get on the property ladder and repossessions rise.
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By
Myra Butterworth
, Personal Finance Correspondent
Published: 7:00AM GMT 28 Oct 2009
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Figures show the number of home owners taking in lodgers has risen by almost 200,000
to 970,000 since 2006, according to a survey from Halifax Home Insurance.
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The extra cash is providing a lifeline for thousands of home owners who are failing
to keep up with their monthly mortgage payments amid the recession.
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Increasing numbers of home owners are falling behind on their mortgage payments,
with 270,000 at least three months in arrears at the end of June this year, according
to the Council of Mortgage Lenders. And the number of repossessions stands at one
household in every 1,000.
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Beleaguered home owners can benefit from the Government’s Rent a Room scheme, which
allows those letting a room to receive up to £4,250 a year tax-free.
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Martyn Foulds, senior claims manager at Halifax Home Insurance, said: “Getting a
lodger in is a great way to earn some extra money to help with the household budget.”
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But he added: “It’s really important to seek reliable references for the person,
and ensure that binding legal agreements are in place, so that all parties know
where they stand.”
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