With UK inflation hitting 8.9%, experts have urged Brits to consider turning their home into a side hustle for extra cash.
But how can you do it effectively?
Tips on how to tap into assets to generate income beyond the traditional means include turning the driveway into a rentable parking space and the garden into an allotment slot.
READ MORE: Furious woman hit with huge bill as tiny garden cabin deemed a ‘second home’
Those considering making passive income from their home and outdoor space will also be happy to hear that you earn up to £1,000 each tax year from a hobby or start-up business without paying income tax.
Similarly, the property allowance means money-makers can earn up to £1,000 tax-free each tax year on income from land or property.
People who rent a room in their home have the potential to earn £7,500 per year completely tax-free under the government Rent a Room Scheme, so it is well worth researching options.
Experts at Quotezone.co.uk have named six savvy ways homeowners could make money from their homes to tackle soaring mortgage rates and general living costs.
1. Rent out a room
Under the government’s Rent a Room Scheme, renting out a room can allow homeowners to pocket an extra £625 a month tax-free, and finding a lodger won’t be challenging with the demand for rooms high nationwide. There is a potential to earn more from lodgers depending on the location, room size and facilities available. Homeowners can also charge lodgers for council tax, utility bills, and even cleaning and food if provided by them.
2. Rent out space for storage
If the loft, shed, garage or basement is empty and unused, why not rent it out to people looking for storage space? These spaces can potentially make thousands in passive income, especially in areas with a high demand, like London. Many people are looking to store their belongings in homes as it works out cheaper than commercial self-storage units.
3. Rent the garden as an allotment
People with a larger garden could consider renting out space as an allotment, allowing the unused space to generate money. Ensure there is easy access to the garden so allotment owners can get in and out when needed.
4. Rent out the driveway
People are desperate for parking near stations, airports and sporting venues and are prepared to pay out for a golden spot. Anyone in a high demand area should research if their car parking space is eligible for renting. There are plenty of websites where homeowners can advertise their sites, claiming their top spaces make upwards of £4000 a year.
5. Hire out rooms to businesses
Make the most of unused rooms by renting them as an office workspace. Sitting rooms, or other rooms which would be appropriate, can be hired out by businesses for meetings or used by start-ups looking for an unconventional workspace. With the rise of remote working, more and more people are looking for affordable workspaces away from home, and plenty of online platforms can help facilitate this renting.
6. Rent to film and TV companies
Agencies are always on the lookout for stunning homes with character to feature on the big screen. Letting a film crew into a home has the potential to earn people thousands.. To be in the running, sign up with a film location agency to see if it would make a suitable contender. Spacious country homes and modern city centre apartments seem popular, although directors need all sorts of houses across the UK to shoot various scenes.
Talking about the tips, Greg Wilson, CEO and Founder of Quotezone.co.uk said: “Making money off your home is ideal for people that don’t have much time and want to generate cash to help with their bills.
“There are so many innovative ideas to try, like renting out the garage for people in need of storage space or the garden to city-dwellers desperate for green space to grow their favourite produce and plants.
“Remember to research beforehand because although everyone has a tax-free personal allowance of £12,500, any earnings over £1000 need to be registered for self-assessment, so inform HMRC.
“Also, let insurance providers know about any changes in your circumstances to ensure you’re protected, for example, if you are taking in a lodger or allowing someone to park on your driveway.”
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