Renting out a room in your home

Rising house prices throughout much of the UK is creating an increased demand for rental accommodation.  Renting offers a lucrative money making opportunity for home owners with a spare room.

This Blog helps answer one of the most common questions that we get asked,

"how much can I expect to earn from renting out a room in my home?"  

How much can I expect to earn?
It depends. There are a number of factors that will affect the amount you will be able to earn.  By far the biggest factor is location.

The highest rents are in London, with the Borough of Westminster commanding the highest typical rents of around £186 per week.

The lowest rents are in Northern Ireland, with Coleraine (£51 per week) and Newtownards (£52 per week) providing amongst the lowest rents in the country.

A full list, showing the typical room rental prices in the UK's largest towns and cities, plus each of the London Boroughs, can be viewed at www.house-saver.co.uk/renting/

Which locations have the highest rents?
The London Boroughs top the charts.  The areas with the highest typical rents comprise:

1. Westminster:  £186 per week
2. Islington:  £159 per week
3. Kensington and Chelsea:  £157 per week
4. Hammersmith and Fulham:  £153 per week
5. Wandsworth:  £149 per week

Which locations have the lowest rents?
Northern Ireland dominates the bottom of the charts, with Huddersfield being the only location outside of Northern Ireland in the bottom 5.  The areas with the lowest typical rents comprise:

1. Coleraine:  £51 per week
2. Newtownards:  £52 per week
3. Huddersfield:  £53 per week
4. Ballymena:  £53 per week
5. Castlereagh:  £54 per week

I live in a nice area, will that make a difference?
Central locations and well-to-do areas in a town or city will command higher rents than less salubrious areas.

There can be a large difference in rents between areas in some of the UK's towns and cities.  For example a smart room in a prime area of St Albans will command a typical weekly rent of £145 per week, whereas rooms in less attractive areas of St Albans will fetch around £92 a week.

Which other factors will determine how much I can earn?
The size of the room is also a major factor.  Double rooms will command a higher rent than a single.

You can charge a premium if a room has an en suite bathroom or if you are willing to let a couple stay, or take in a pet.

Providing off street parking will also enable you to charge a higher rent.

Letting out your room on weekdays only, whilst enabling you to get your house back to yourself at weekends, will reduce your earnings.

Will I have to pay tax on my earnings?
Under the Government’s Rent a Room scheme, you can earn up to £4,250 through renting a room before paying tax.   The government will increase the level of Rent-a-Room relief from £4,250 to £7,500 from April
2016. For more information on the tax implications of renting out a room, visit www.gov.uk/rent-room-in-your-home.

Summary
Taking in a lodger is a tried and tested way of generating a significant income from your home.  Whilst rental earnings vary significantly from town to town, if you have a spare bedroom in your home you are unlikely to find a more lucrative way of bringing the room into use.

David
House-Saver

Help! My house is freezing!

"My heating bills are sky high but my home is still freezing!?"

If this is you, don't panic. The following Guide provides fail-safe directions for creating a cosy home this winter (whilst keeping a lid on your heating bills). The Guide does this in 4 easy to follow steps.


Step 1:  Good housekeeping practices
Gran knew what she was doing with her good housekeeping practices. Keep those doors closed.  Wear a pair of slippers around the home.  Try on that onesie you received as a Christmas present. Below is a reminder of a few other golden oldie tips:

1. Hang thick curtains during winter months, which should be opened during the day to naturally heat your home and closed at night to keep the heat inside.
2. Try not to obstruct your radiators - give the heat a chance to circulate
3. Whilst we are on radiators, fit foil on the wall behind them.
4. If you have a ceiling fan, set it to spin clockwise to blow the rising hot air down.
5. Lay mats or rugs down on cold floors.

The above tips are all low cost or no cost.  However, if you struggle with a cold home, these measures are unlikely to be sufficient to create a warm home for the winter.  On to Step 2.

Step 2:  Plug those Gaps













UK homes can be very draughty.  Before considering any expensive upgrades to your central heating system, consider the following measures to plug the gaps in your property.


Your walls
33% of the heat lost from our homes disappears through our walls.  Up until the 1920s the typical UK home was built to a solid wall construction.  If you live in an old property, installing insulation on your outside walls can drastically reduce the amount of heat lost from your home.

Since the 1920s cavity wall construction has been the standard. However, up until the 1990s, the gap between the two walls (the cavity) was rarely insulated. Filling this gap with insulation is a relatively inexpensive yet highly effective measure to reduce heat-loss from your home.

Your roof
26% of the heat lost from our homes disappears through the roof.  Bulking up your roof insulation to the full recommended depth of 270mm is easy to do and because hot air rises, properly insulating your loft will often be the single most cost-effective way to reduce heat loss from your home.

Your windows
18% of the heat lost from our homes disappears through our windows.  Replace single-glazed windows with double-glazing.  Already have double glazing?  Double-glazed windows will deteriorate over time.  Have your windows inspected.  They may benefit from draught proofing or they may need replacing.

You can expect a double-glazed window to last for around 20 years. After this length of time, the window may need replacing to keep those draughts at bay.

Feeling brash? Follow the Scandinavians and have triple glazed windows fitted.

Your floors
8% of the heat lost from our homes disappears through our floors. Insulate under the floorboards on your ground floor.  This will help keep the heat in and your toes warm.  Also, seal the gaps between your floors and skirting boards to further reduce draughts.

Your doors
3% of the heat lost from our homes disappears through our doors.  Consider draft proofing your doors.

The heat loss figures quoted above are courtesy of the Energy Saving Trust and are based on an un-insulated home

That's Step 2 complete.  If you have applied the above measures and your home is still cold, its time to consider your central heating system.  We do this at Step 3 below.

Step 3: Upgrade your central heating system
Typical central heating systems comprise a boiler and radiators. The boiler heats water which is then distributed through pipes to your radiators.  The problem with your central heating could be with your boiler, your radiators, or with both.  Have a suitably qualified plumber inspect your system.  Your central heating problem may just be down to your boiler needing a service.

Whilst you are examining your boiler make sure that your hot water tank and visible pipes between the tank and boiler have been insulated.  Also consider installing thermostatic radiator valves to control individual room temperatures.  This will prevent unnecessary heating of any rooms not being used.

My boiler needs replacing.  What are my options?  
The plumber's verdict is that your boiler is on its last legs - what now?  Whilst expensive, modern condensing boilers are much more energy efficient than older models.  If your old boiler is not doing the job, do not delay, have a new boiler installed.  Fitting a new boiler will save you money in the long run, and will ensure that you have a central heating system that has the capability to properly heat your home.

The most common boiler systems are powered by gas or oil. Gas being the more cost effective of the two. Feeling brave?  There are alternative boiler technologies out there, such as CHP (combined heat and power) boilers and biomass boilers. These, are well worth considering if you are currently relying on an expensive-to-run oil fueled boiler.

Paying for a new Boiler
A new boiler, whilst saving you money in the long run, will have a high upfront cost.  The Government's Green Deal scheme may help you to pay the upfront costs.

Step 4: Create your own energy
This is an optional Step for the really keen.  There are lots of technologies out there that can help you generate your own energy.

The type of central heating system you have will be a key factor in informing which energy generating technology you should go for.  Therefore, for optimum results, the installation of an energy generating technology is best carried out in tandem with an upgrade to your central heating system.












Your energy generation options include:

• Solar Panels (Solar PV and Solar Thermal)
• wind turbines
• ground source heat pumps
• air source heat pumps
• water source heat pumps
• hydroelectric systems
• wood burning stoves

The above energy generating technologies, especially wind turbines and hydroelectric systems, do not come cheap. Fortunately, the UK Government is investing a great deal of money into enabling householders to install renewable energy generating installations. So now is a good time to check out the potential financial assistance available.

If the above measures don't deliver a toasty home I don't know what will.  There is off course a 'Plan B' - hide under your duvet and wait until Spring. Not such a bad option in the dreadful weather that we've been having.

Warmest wishes

David

www.house-saver.co.uk

Getting in Shape on a Budget

Is you New Year's Resolution to get in shape?  The starting point for many people is to join a gym.  Gym membership prices may seem competitive right now.  However, initial cheap gym membership fees will usually be offered on the basis that you sign up to a long term contract.

Our advice is don't sign up. Many people enter into long term gym membership contracts that they will end up not using. Instead, House-Saver would recommend an alternative, cheaper, more effective and more sustainable way of getting into shape (and keeping in shape).

Create your own gym at home
If you have the space, you could set up your own home gym in a spare room. The upfront costs of home gym equipment are a lot cheaper than you may think, especially if you shop in the second-hand market.

In next to no time, you’ll find that the money saved through not paying for gym membership will have covered the initial costs.

As well as saving money, you can also gain the convenience of having a personal gym on hand 24/7.  Plus, your own fitness suite means no more queuing to use certain pieces of equipment and no more driving to the gym.

If you source your equipment from the second-hand market, you can expect to get a decent treadmill for about £150 and a multi-gym or workout bench with weights for around £100.

Get in shape for free
Even better still, from a household budgeting point of view, is to get in shape without forking out for gym equipment.  Many compound workouts such as push-ups and crunches can be done with no equipment at all. To find out more, try Googling "resistance training without equipment”.

As for cardio, all you really need is a good pair of trainers and a safe route outdoors.  Don't let the nasty weather we are experiencing put you off, you'll soon warm up, and the combination of fresh air and exercise will leave you feeling invigorated.


My New Year's resolution is to end 2014 in better physical shape, and with more money in my pocket. Wish me luck.

Happy New Year from all at House-Saver.

David
www.house-saver.co.uk

Technical Guidance on Wood Burning Stoves

Wood Burning Stoves are growing in popularity.  People are looking for an alternative to the ever-rising energy bills being imposed on us by the UK's major energy suppliers.  Modern wood burners offer the warmth and homeliness of traditional log fires whilst providing greater control and requiring less effort to maintain.  Some technologies can even provide an alternative to a home's central heating system. It is no wonder that wood burners are now so popular.

However, many people do not realise just how complicated the installation of a modern wood burning stove can be.  A poorly fitted wood burner will not just lead to problems in its operation, it is also likely to be highly unsafe.

Last year the Energy Saving Trust published A Buyer's Guide to Domestic Wood Fuelled Heating.  This guide provided a useful introduction to wood burning stoves, but provided only limited advice on their installation.

Now, finally, we have an authoritative guide to the installation of wood burning stoves, courtesy of the gurus at Local Authority Building Control (LABC).

The LABC Guide to installing solid fuel stoves (Technical guidance for homeowners and trade) is aimed at trades people who intend to install a wood burning stove in an existing property.

The Guide highlights the following 10 key points for an installer to consider:

1. Check the existing chimney for condition and obstructions
2. Ensure components comply with the relevant British Standards
3. Where possible, adopt a minimum internal flue size of 150mm diameter
4. Check that the flue outlet is positioned sufficiently high above the roof surface?
5. Make sure you isolate the flue from any combustible material
6. Ensure the stove is positioned on a proper non-combustible hearth
7. Check you have a sufficient air supply for combustion
8. Provide carbon monoxide alarms
9. Provide proper permanent notices about the appliance in the property
10. Ensure you have all formal permissions before starting work

The Guide emphasises the importance of employing a trades person with sufficient skills to undertake the work. Although qualifications are not compulsory, any person fitting a solid fuel stove must be competent to do so. The Guide advises on 2 options for employing an installer:

Option 1: Employ a Competent Persons Scheme certified installer
Some installation companies are registered with the Government’s Competent Persons Scheme. This allows them to install and ‘self-certify’ the stove without having to make a formal application to the Council under the Building Regulations.  The largest Competent Persons Scheme provider is HETAS. Make sure the installer provides you with a certificate of compliance at the end of the job.  You will need this certificate should you come to sell your property.

Option 2:  Employ a knowledgeable trades person and have the job inspected by your Council's Building Control Service
If you appoint a trades person who is not part of a relevant Competent Persons Scheme, then you will need to submit a Building Regulations application to your local Council.  The Council's Building Control Officer will then come out and inspect the job to ensure that the wood burner has been installed safely. If satisfied with the work, the Council's Building Control Officer will issue a completion certificate. As with Option 1, you will need this certificate should you come to sell your property, so do not pay the final bill to your installer until you have this piece of paper in your hands.

Considering installing a wood burning stove?  We would suggest that you start by getting in touch with your local Building Control Service to make sure that your property is suitable.

David
www.house-saver.co.uk