Oct 18, 2018
Monday to Friday room rentals or mid-week rentals are on the rise in the UK. There are a number of factors driving this trend by British renters, all of which are ongoing. The benefits for landlords, too, is bringing many mid-week rentals to the market. Let’s examine the rise of Monday to Friday room rentals and the multiple forces and factors behind it.
Getting a foot on the property ladder in busy cities is difficult, even if you’re earning a high salary. The solution for some is to live outside of the expensive urban core and commute in.
The alternative for others is to rent a room Monday through Friday and then go “home” on the weekends to a cheaper abode. This explains why London saw the most Monday to Friday rentals in the UK, followed by Reading, Oxford, Bristol, and Coventry. This is especially true for couples where one works downtown and the other works in the suburbs. Given the high wages paid in cities like London, there are many families able to afford a home in the country that the stay at home spouse and children live in, even after the rent for the Monday to Friday room rental.
The Lower Cost for Some
Many students are finding Monday to Friday room rentals an affordable alternative to staying on campus and a much more convenient one as well. It can provide high-quality housing close to campus for those who don’t want to live in a dorm, and it may be cheaper than staying on campus, as well.
Those who want to work in hot job markets like London but can’t afford to stay full-time may rent a room Monday to Friday before returning home to stay with family and friends, saving money overall. Renting a room Monday to Friday is certainly cheaper than staying in a hotel. And there are plenty of online directories specifically for Monday to Friday lets, whether you’re looking for a place to stay or want to solicit renters, which is driving up the competition even more.
One reason why more people are considering Monday to Friday room rentals is that they can’t stand their commute to work otherwise. The time saved allows many people to work longer hours at work, though only a few are able to secure a four day a week job instead of a five day a week job. Others simply enjoy the opportunity to get enough sleep. Then there’s the reduction in stress. If you’re returning to a rented room at the end of the day, you don’t have to worry so much about leaving in time to beat the traffic home or catch a train. In short, it saves you from nightmare commutes.
The recent economic uncertainty and its impact on the job market means many are afraid to commit to buying a house in London and other expensive markets. It also limits supply since many homeowners are reluctant to make a major decision like selling a house. This is driving up prices for properties even higher and makes it almost impossible for some to afford rent. A Monday to Friday let allows someone to take a job in a city like London without signing a lease or taking out a mortgage. If you lose your high-paying job, you return home to your cheaper suburban or country home and try to find work somewhere else.
The Government Incentives to Do So
For landlords, renting a room to a student or commuting worker Monday to Friday lets them enjoy rental income while still retaining some privacy. It is about 70% what you’d receive from a full-time rental. However, you’re still eligible for the tax advantages when renting to the Monday to Friday crowd. You can earn up to £7,500 tax-free under The Rent a Room Scheme, but you would have to declare any earnings beyond this. Renting out a room could affect your home insurance, too.
Many homeowners have to soften up their stance when it comes to taking in lodgers. The changing landscape and various incentives to do is also increasing the number of lots on the market. And portal sites also allow both landlords and lodgers a way to verify each other’s credentials and reputation, facilitating the whole process. And as more players enter the market, we can expect the trend to keep growing and for midweek rents to become increasingly common among landlords, especially as the property market heats up and rental prices in city centres around the country are soaring to new heights.
Weekly boarders or Monday to Friday renters get the best of both worlds. The benefits and incentives for landlords are propelling the supply side of the market, as well. It’s a win-win for everyone.