University staff are picking up £2,000 interest-free loans to compete with local landlords in a rent a room scheme.
Not only do the landlords who take in student lodgers get the chance to earn £4,250 a year in rents without paying tax, but they can fit out the rooms for their new tenants with the loan as well.
The deal is part of a scheme to encourage staff at Aberystwyth University, Wales, to give up spare rooms in their homes for student lodgers.
The loan is paid back at £166 per month over a year. Similar loans are not available to non-staff.
Jim Wallace, who handles residential services at the university, said: “We recognise that due to the popularity of the university, there are unprecedented calls for accommodation within the private sector this year.
“We are aware that a number of staff have rooms available within their homes and that they and the students could benefit from the scheme.”
Aberystwyth is not the only university to run rent a room schemes – Manchester, Leicester, London Metropolitan, Sussex, East Anglia have similar options for students.
Ursula Byrne, who works at the university, said: “We have students living in our home and have found it a great experience. We learn a great deal from one another and I hope that, by living with us, we have had a positive impact on their time at university.”
She also hinted that living with students can present problems – like the hours they keep.
The package also lets landlords earn up to £4,250 tax free under HM Revenue and Customs rent a room scheme. The tax break is aimed at householders who take in lodgers – the landlord must live in the home where rooms are rented out as the owner or tenant.
International students often opt to live with a family local to campus so they can improve their English and learn about customs and culture.
