According to research commissioned by Abbey Mortgages, the number of home owners renting out a spare room has tripled over the last twelve months.

Abbey estimates that more than 981,000 people are currently 'landlords', an increase of 152% from 388,000 in July last year.

Today, 3 % (981,000) of homeowners are boosting their income by renting out spare rooms and a further 3% have said they are currently considering taking in a lodger.

Those people who have taken in a lodger are now earning an average of £393 a month (average UK rent according to rentright.co.uk) or £4,716 a year in rental income - just over the government's Rent a Room scheme's tax free threshold of £4,250.

Abbey Mortgages found that 16 million UK homeowners have at least one spare room and if all of these rooms were to be let, homeowners would collectively reap as much as £6.29 billion in lodger rent.

Homeowners in London were the most likely to take in a lodger (6%) compared to just 1 per cent in Scotland and Northern Ireland.

Nici Audhlam-Gardiner, director of Alliance & Leicester Mortgages, commented: "If you have a spare room that's gathering dust, its worth considering a lodger and earning £4,716 a year. Not only will you have some extra money each month but most of it could be tax-free too.”

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