H&P comment: ‘Unlocking unused space is part of the housing solution’

New data published by Halifax yesterday revealed the average cost of a first home in London is now £587,700, with the average deposit a third of that at £188,700.

Little surprise that just two in five first-time buyers are expected to be able to get on the ladder without family help this year, according to Savills.

This means that more people will be stuck renting, hardly an affordable alternative with London renters now spending almost £3,000 a year more than owners on housing costs.

Higher earners, able to pay more rent, are taking over the inner city, pushing middle and low earners further afield.

The housing market needs urgent reform if London is to have a future as anything other than a playground for the super rich, but this requires a broader approach than just talking housing targets.

An often overlooked option for increasing rental supply whilst giving a welcome boost to homeowners facing soaring mortgage payments is the Rent a Room scheme which allows earnings of up to £7,500 a year tax-free from letting out furnished accommodation in a home.

Such accommodation is often substantially cheaper than market rate, too.

It won’t work for everybody, but it’s one part of a healthy, diverse housing ecosystem that lots of people who might be keen don’t know about.

According to Airbnb 38 per cent of homes in England have two or more spare rooms, pointing to a wealth of potential hidden supply.

As I found when I rented out my own spare room, charging £500 per month to a council worker who visited her boyfriend most weekends — squeezing strangers into a small London communal living space isn’t always ideal, and it’s not an arrangement that should be undertaken lightly by either side.

But the thought of having an underused spare room when so many are desperate for somewhere to live at the moment is just as troubling.