Earn cash by renting to commuters

The idea has also won the support of property TV presenter Michael Holmes, who believes such taking in a lodger "could be a real option" for those struggling to keep afloat in the economic downturn.

He said: "This is a credit crunch solution for those struggling to keep up with mortgage payments and monthly rent instalments.

"People can make a profit, and this scheme can provide stability and affordability for those who have lost their jobs or are worried about bills.

"The concept is beginning to kick off in London, especially with commuters."

The rent-a-room scheme is backed by the government, and has been designed to encourage people to take in lodgers for extra income during the credit crunch.

Michael supports the idea of renting rooms to the travelling masses. He said: "People could turn their home into a halfway house and rent a room out to a Monday-Friday commuter in London.

"This would leave the owners with the free rein of their home at weekends."

He said the scheme is perfect for people living on their own as it has "a social advantage, and some lodgers could even provide baby-sitting".

Spare rooms can be emptied and the junk can be put into storage space for £1,100 a year, which is the national average according to the same study by Big Yellow Self Storage.

Some first-time buyers are purchasing houses with lodgers in mind. Michael said: "This is a brilliant way to deal with mortgage payments.

"It is especially good for students who own a property with more than one spare room."

Michael acknowledged the scheme would not suit all homeowners.

He said: "It is not ideal for everyone, problems include loss of privacy, but if a formal agreement is set up, outlining specific guidelines, this should avoid any conflict like personal space being ignored.

"Lodgers don't have any tenancy rights so if things do not turn out right, you can just ask them to leave."

The presenter said tips for renting out space included setting up a direct debit for rent payments and asking for four to six weeks' deposit before a lodger moves in.

He said: "These measures should save any embarrassment. If the lodger is in your home, you don't want to be all sat round in the living room, and having to ask for the rent or chasing up a deposit."

He said getting reference checks from past landlords or employers before prospective lodgers moved in were also important.

He said: "Vetting the lodger beforehand provides protection. You have to be very careful about you are letting into your home.

"It is ideal if the lodger is recommended by somebody you know, maybe though friends or work."

For more information on renting out a room through the tax-free scheme go to direct.gov.uk and click on the Money, tax and benefits section.