The Chancellor should double the tax relief on income made from renting out a spare room when he delivers his pre-Budget report on 9 December, according to the National Landlords Association.
The NLA hopes that Alistair Darling can be persuaded to raise the tax-free ‘rent-a-room’ threshold from its current level of only £4,250 a level it has remained at since being introduced in 1997.
Since that time, rents have more than doubled in most parts of the country, shrinking the value of the original income threshold.
The NLA is one of several organisations supporting the Raise the Roof campaign, which is lobbying for an increase to £9,000 per year.
‘Raising the tax-free threshold for live-in landlords would provide an important boost to homeowners who are facing difficulties meeting their mortgage payments,’ said Chris Norris, NLA policy manager.
‘For many, the extra rental income really could mean the difference between paying the mortgage and losing their home.’