NLA calls for threshold increase

The National Landlords Association (NLA) called on the government yesterday to raise the tax threshold on its rent-a-room scheme.

Under current regulations, landlords who let out spare rooms in their homes are entitled to £4,250 of tax-exempt earnings.

However, the NLA claims the scheme is outdated as the threshold has remained unchanged since its inception in 1997, while rent prices have increased significantly over the same period.

NLA figures show that 60 per cent of rooms in the UK are let for more than £4,250 per year, a figure that rises to 91 per cent in London.

The organisation claimed raising the limit to £9,000 per year could help prevent repossessions and add "much-needed" affordable housing.

David Salusbury, chairman of the NLA, said there is no way of knowing how many potential landlords were not letting out spare rooms due to the hassle of completing self-assessment tax forms.

"A fair deal for those looking to rent a room by increasing the tax-free threshold will help homeowners and the economy," he said.

"It is a win-win situation that helps both parties and it is about time the exemption reflected the increase in market rents."

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