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More taking in lodgers to keep the wolf from the door

More taking in lodgers to keep the wolf from the door

The number of cash-strapped Dundee homeowners taking in lodgers rose by a fifth in the last year.

The city experienced a 22.2% rise in homeowners renting out rooms to lodgers from January 2013 to last month.

Dundee experienced the fourth largest year-on-year rise in the UK, according to online house and flat share site SpareRoom.co.uk.

Average monthly rent including bills in Dundee now sits at £326.

And it was the second-highest ranked city in Scotland, trailing behind Aberdeen which saw a 59.7% rise in “live-in landlords.”

“It is not surprising that the number of homeowners taking lodgers is at an all time high,” website director Matt Hutchinson said.

“Millions of families are looking for ways to combat the rising cost of living, while first-time buyers are looking for ways to offset the costs of starting a home.

“Whether it’s to cover mortgage repayments, credit card debts or just to increase the overall household income, taking in a lodger can provide a much-needed financial boost.”

A spokesman for Citizens Advice Scotland added: “There is no doubt that the economic crisis is continuing to hit people in Dundee and all across Scotland.

“CAS advisers regularly see people in financial crisis who can’t make ends meet.

“The shortage of affordable housing also makes it difficult for people, particularly young people, to get on the housing ladder.”

However, TSPC manager Peter Ryder said there had been a marked increase in first-time buyers in the last half year.

“We’ve noticed the amount of first-time buyers coming on to the market has gone up in the last six to eight months,

“They’ve had quite a number of years now to save up deposits and the mortgage availability with the banks has helped as has the new help-to-buy scheme through the Government.

“This is having an effect on the rest of the market.”

He said in the last eight months the company had sold more properties than the corresponding months of the previous year.

“In January we sold 240 homes as opposed to 133 in January 2013,” he said.

“We’ve still a few days of February to go but figures will probably be up by at least 25%.”

SpareRoom, supported by housing charity Shelter, has launched the Raise the Roof campaign, calling on the Government to raise the Rent A Room tax-free threshold to £7,500 per year.

The Rent A Room scheme allows homeowners to earn up to £4,250 per annum for letting furnished rooms to lodgers.

That threshold was last revised in 1997.