5 Ways to Make Extra Income From Your Property in the UK

Your property can earn money for you beyond simply gaining value over time. From renting out a parking space to hosting a film crew, there are several legitimate ways to generate extra income from your home without taking on a second job.

Short Summary

Renting out a parking space is one of the simplest ways to earn extra income, particularly if you live near a city centre or transport hub.

The UK government's Rent a Room Scheme lets you earn up to £7,500 per year tax-free from a lodger, making it one of the most tax-efficient income options available.

Letting your property as a film or TV location can earn £500 or more per day, and you do not need to own a stately home to qualify.

Any rental income you earn may be taxable above certain thresholds, so it is worth checking your obligations with HMRC or a tax adviser.

How much can you earn renting out a parking space?

Renting out a driveway or allocated parking space can earn between £50 and £400 per month, depending on location. Demand is highest near train stations, airports, sports stadiums, and city centre offices. Platforms such as JustPark and YourParkingSpace let you list your space for free and take a small commission on bookings. Setup takes around 15 minutes, and you can block out dates when you need the space yourself.

Can you earn money renting out storage space in your home?

Yes. If you have a spare room, garage, loft, or shed, you can rent it out as storage through platforms such as Storemates. Pricing your space at around 50 per cent of the cost of commercial self-storage is competitive and can earn roughly £25 a week for 50 square feet. The average rental period on Storemates is around eight months, which could mean around £800 per arrangement. Storemates provides guidance on drawing up contracts and inventories to protect both parties.

How does letting your home as a film location work?

Production companies regularly rent ordinary homes for filming. Agencies such as Amazing Space, Lavish Locations, and Film Locations UK match homeowners with production companies. Householders report earning £500 or more per day, and shoots can last anything from a few hours to several days. Never pay an upfront fee to list your property; reputable agencies earn a commission only when your property is actually used. Notify your home insurer before agreeing to any bookings.

What is a Monday-to-Friday lodger?

A Monday-to-Friday lodger rents your spare room during the working week only and returns home at weekends. This suits commuters who work in cities but live too far away to travel daily. You get the income without giving up your weekends. Under the government's Rent a Room Scheme, you can earn up to £7,500 per year tax-free from a lodger. Platforms such as MondaytoFriday.com and SpareRoom can help you find suitable tenants.

Can you rent your home out during major events?

If you live near a venue hosting a regular major event, such as Wimbledon, Glastonbury, the TT Races, or a Premier League stadium, you may be able to rent your home during event periods at a significant premium. This works best for smaller households that can stay with friends or family for a few nights. Contact your local tourist information office or list on Airbnb for short-let bookings. Check your mortgage terms first, as some lenders require you to notify them before subletting.

Property income tax: what you need to know

Income type	Tax-free allowance	Notes
Lodger (Rent a Room Scheme)	Up to £7,500/year	Must be your main home
Parking space rental	£1,000/year (property allowance)	Applies to total property income
Storage rental	£1,000/year (property allowance)	As above
Short-let (Airbnb etc.)	£1,000/year (property allowance)	Different rules may apply to furnished holiday lets

Income above these thresholds must be declared to HMRC via Self Assessment. If you are unsure whether your rental income needs to be declared, the HMRC website or a qualified tax adviser can clarify your position.

Frequently Asked Questions

Do I need to tell my mortgage lender before renting out part of my home?

Most mortgage agreements require you to notify your lender before subletting any part of your property. Failing to do so can put you in breach of your mortgage terms. Contact your lender directly to ask about their policy; many are happy to give consent provided the arrangement is short-term or limited in scope.

Do I need landlord insurance to take in a lodger?

Your standard home insurance may not cover you once a lodger moves in. Contact your insurer before the arrangement begins and ask whether your policy needs to be updated. Specialist lodger or home-let policies are available from insurers including Aviva and Direct Line.

Is renting out a parking space taxable?

Parking space rental counts as property income. HMRC's £1,000 property income allowance means you can earn up to £1,000 per year from property without paying tax on it. Income above that threshold must be reported via Self Assessment.

Can I rent out my home on Airbnb if I have a leasehold flat?

Check your lease before listing your property. Many leasehold agreements prohibit short-term lets without the freeholder's written permission. Some local councils also require planning permission for frequent short-term lettings. Breaking these rules can result in legal action from your freeholder or council.

What is the Rent a Room Scheme?

The Rent a Room Scheme is a government initiative that lets you earn up to £7,500 per year tax-free by renting out a furnished room in your main home to a lodger. You do not need to own your home to use the scheme, but you must live there as your main residence. Full details are available on the GOV.UK website.

How do I find tenants for a spare room? SpareRoom, Rightmove, and Zoopla all list rooms to let. MondaytoFriday.com specialises in weekday-only lodgers. Word of mouth and local community Facebook groups can also be effective, particularly in university towns.