Homeowners turn to landlords in economic downturn

Homeowners across the country waking up to the realisation that they may not be able to sell their homes even at a low cost are turning to the rental market, it has been reported.

Families that are forced into moving, through a change in job location or divorce, for instance, are struggling to collect satisfactory prices for their homes and are increasingly turning to tenants who will rent their house from them.

Although many people are choosing to let out houses they have vacated and cannot sell, there are also those who can no longer afford the mortgages in their own property, and so have begun renting a smaller property while letting out their own home.

Richardson of Arnolds, a chartered surveyor in Norwich, told the Times: "People are letting their own house and then renting something more suitable to their current needs."

Also notable is the number of families taking advantage of the government's tax breaks for renting one room out in a family home.

Having a lodger is now becoming more socially acceptable, and is proving an effective means of extra income.

However, families interested in taking on a lodger must understand that home insurance must be kept up to date and made fully comprehensive.

August 19^th 2008

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