Growth in the number of households offering rooms to lodgers slowed significantly in the past year according to SpareRoom.

Between 2024 and 2025, growth was subdued at 1.5%, down from a 19% increase between 2023 and 2024. 25% of all rooms available to rent in shared accommodation are offered by lodger landlords, contributing to supply and offering cheaper rents that are 13% lower on average. 

Matt Hutchinson, director of flatshare site SpareRoom.co.uk, said: “People rent out rooms in their homes for all sorts of reasons and in doing so they inject desperately-needed supply into the UK room rental market which is suffering under the weight of intense demand that’s inflating rents. 

“The scheme doesn’t stipulate a minimum length of stay, in recent times it has also been used by those renting out furnished rooms to holidaymakers on sites like Airbnb. It’s time this loophole was closed so the scheme can help renters as intended.

“Rental supply needs a shot in the arm and tweaking the Rent a Room scheme is a glaringly obvious fix. In the midst of a housing crisis, protecting affordable supply is critical.”

Over the past five years, the UK average room rent has risen 28% and, in Q3 2025, hit a new high of £753 per month. But the Rent a Room scheme threshold – the amount people can earn tax-free from renting out furnished rooms in their homes – has not changed since 2016 when monthly rents were £573, and well within the threshold.