Your home is likely your most valuable asset, and for many people it also represents an underused source of additional income. From renting a spare room to letting your driveway, there are several legitimate ways to generate meaningful extra money from property you already own.
- The Rent a Room scheme
- Renting your driveway or parking space
- Renting your home for short-term lets
- Renting storage space
- Filming and photography locations
The Rent a Room scheme
The government's Rent a Room scheme allows homeowners and tenants (with landlord permission) to earn up to £7,500 per year tax-free by renting out a furnished room in their home. This is a generous allowance — £7,500 per year is £625 per month — and for many people in areas with strong rental demand, it can make a significant contribution to household income.
Income above £7,500 is taxable, but the scheme still provides substantial tax relief on the first £7,500. The room must be in your main residence and must be furnished.
Renting your driveway or parking space
In areas with parking pressures — city centres, near train stations, near sports venues or hospitals — a driveway or unused parking space can generate £50 to £400 per month. Platforms including JustPark and YourParkingSpace connect space owners with drivers, handling payment and providing insurance.
Renting your home for short-term lets
Platforms like Airbnb allow you to rent out a spare room or your entire home while you are away. Income is taxable above your personal allowance, though the property income allowance provides £1,000 per year tax-free. Be aware that some mortgage lenders and leasehold agreements prohibit short-term letting — check your terms before proceeding.
Renting storage space
If you have a garage, loft, or spare room that you use for storage, platforms like Storemates allow you to rent that space to people needing storage. Rates vary by location and space size but can generate £50-£200 per month for minimal effort.
Filming and photography locations
Homes with interesting interiors or outdoor spaces can be registered with location agencies and rented for photography, film, and advertising shoots. Income can be substantial for a single day's use, though demand depends heavily on the specific property.
Bottom line
The Rent a Room scheme is the most accessible and tax-efficient option for most homeowners. If you have a spare room and the right location, the financial benefit can be transformative. Explore the other options based on your specific property and circumstances.