Under the Rent-a-Room scheme homeowners can make up to £4,250 in rent receipts without paying tax, but this figure will increase to £7,500 from April next year.
Although I am one of the landlords that could benefit from this increase, which has been unrealistically low for many years, I am also deeply concerned that many landlords will immediately hike room rents and price people out of housing. It takes the amount that can be charged for lodgings from £82 to £144 a week.
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