Islanders with rooms urged to help on housing

Islanders are being reminded of a new income tax relief aimed at alleviating housing pressures by encouraging the use of under-occupied properties.

Under the scheme, which came into effect on 1 January, homeowners who rent out rooms in their principal private residence can receive up to £10,000 per room in rent without paying income tax, for up to two rooms.

To qualify, tenants must be over 18 years old and not family members, the rooms must be furnished and not self-contained, and the property cannot operate as a guest house or bed and breakfast.

It follows a report by the Institute of Directors Guernsey which said property prices in the island remain "relatively unaffordable", despite new figures showing a slight decrease.

Deputy Heidi Soulsby, Vice-President of the Policy & Resources Committee, said: "We know that lots of people are living in homes with spare bedrooms, some by choice, others because they find it difficult to downsize.

"This rent-a-room relief will incentivise and make it more attractive to rent out spare rooms to the benefit of the homeowner while also making more accommodation available."

For jointly owned properties in the scheme, the income and tax relief will be split equally between owners, with any unused allowance being non-transferable.

Rental income exceeding £10,000 will be taxed at the standard rate.

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