Raise Rent a Room Scheme tax-free threshold to reflect inflation & housing needs

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Raise Rent a Room Scheme tax-free threshold to reflect inflation & housing needs

Petition Details

Increase the Rent a Room Scheme tax-free threshold from £7,500 to at least £12,000 per year and introduce automatic index-linking to inflation. Public policy benefits are: Increase housing supply; neutral/low cost (uses existing homes); economically fair; administrative ease; supports workers.

Additional Information

This would make a good public policy. The £7,500 Rent a Room threshold has been frozen since 2016 and lost real value due to inflation as other costs have risen. Raising and index-linking it would encourage homeowners to rent spare rooms, increase housing supply without new development, reduce pressure on renters, and help households manage rising costs.

This would particularly help single people and key workers.

Index-linking the threshold would ensure it remains fair & effective over time.

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