- Portsmouth is the most profitable city in the UK to rent out a parking space, with homeowners earning an average of £2,887 per year
- Cambridge is the top place in the UK outside of London where landlords can earn the most annually by renting out a room in their home (£9,900)
- Brits can earn on average an extra £1,426 a year by renting out their driveway
Amidst the high cost of living and high mortgage rates, , many homeowners are starting to rent out parts of their homes to earn some extra money. But which UK cities offer the most profitability for those considering renting out?
The home insurance team at Compare the Market conducted research to reveal which locations in the UK are the most profitable for those willing to let rooms and parking spaces and for those who can, properties. They also offered expert tips on how to go about renting out different parts of a property.
You can find the full research here: https://www.comparethemarket.com/home-insurance/content/value-of-renting-out/
Portsmouth is the most profitable city in the UK to rent out a parking space, with homeowners earning an average of £2,887 per year
| Rank | City | Average price of a parking space (per month) | Average price of a parking space (per year) |
| 1 | Portsmouth | £241 | £2,887 |
| 2 | London | £186 | £2,236 |
| 3 | Coventry | £184 | £2,204 |
| 4 | York | £168 | £2,016 |
| 5 | Wolverhampton | £156 | £1,873 |
| 6 | Plymouth | £137 | £1,640 |
| 7 | Bristol | £135 | £1,621 |
| 8 | Doncaster | £130 | £1,557 |
| 9 | Stoke-on-Trent | £126 | £1,512 |
| 10 | Preston | £124 | £1,482 |
Claiming first place is Portsmouth, where letting a spare parking space could boost homeowners’ incomes by £241 per month, or to £2,887 annually. This could be because of the smaller availability of parking spaces in the city evident in our research, compared to other locations such as London.
In second place is London, where renting a parking space averages £186 per month, amounting to £2,236 of extra annual income – £651 less than Portsmouth. Following in third is Coventry, costing £184 per month, amounting to a potential £2,204 extra income per year in Coventry.
Cambridge is the least profitable city, with parking spaces costing £61 a month on average, or £732 per year. This could be because the city has one of the highest numbers of cyclists in the country.
Resident landlords in London are profiting the most by renting out a singular room in their home, receiving an average of £10,906 per year
| Rank | City | Average price of a room (per month) | Average price of a room (per year) |
| 1 | London | £909 | £10,906 |
| 2 | Cambridge | £825 | £9,900 |
| 3 | Leicester | £724 | £8,688 |
| 4 | Milton Keynes | £718 | £8,618 |
| 5 | Oxford | £706 | £8,476 |
| 6 | Bristol | £703 | £8,436 |
| 7 | Manchester | £665 | £7,985 |
| 8 | Portsmouth | £654 | £7,850 |
| 9 | Norwich | £625 | £7,494 |
| 10 | York | £619 | £7,428 |
London is the most profitable place for homeowners to rent out a single room, with tenants paying £909 per month on average, amounting to £10,906 extra income per year.
In second place, and the most profitable city outside of London, is Cambridge, with landlords receiving £825 per month, or £9,900 per year. Leicester follows, with an average profit of £724 per month for homeowners renting out a room (£8,688 per year).
At the other end of the scale, Kingston upon Hull is the least profitable place in the UK to rent out a room, with homeowners charging £482 per month for a room here, equivalent to £5,789 annually.
Landlords in London can earn £71,952 per year renting out a three-bedroom property
| Rank | City | Average price of a 3-bed property (per month) | Average price of a 3-bed property (per year) |
| 1 | London | £5,996 | £71,952 |
| 2 | Cambridge | £2,448 | £29,370 |
| 3 | Oxford | £2,413 | £28,959 |
| 4 | Bristol | £1,845 | £22,135 |
| 5 | York | £1,773 | £21,271 |
| 6 | Southend-on-Sea | £1,745 | £20,940 |
| 7 | Manchester | £1,635 | £19,622 |
| 8 | Milton Keynes | £1,569 | £18,826 |
| 9 | Portsmouth | £1,520 | £18,235 |
| 10 | Leeds | £1,515 | £18,185 |
For those who can, renting out your home is a great way to bring in additional income. London tops the list again, with landlords receiving around £5,996 per month from renting out a three-bedroom property – a staggering £71,952 per year in added income.
Cambridge takes second place, with landlords receiving around £2,448 per month by renting out a three-bedroom property, or £29,370 annually — £42,582 less each year than those renting out in London. Taking third place is Oxford, costing £2,413 per month (£28,959 per year).
Kingston upon Hull is the least profitable area of the UK to rent out a three-bedroom home, costing £761 per month or £9,127 per year.
Anna McEntee from the home insurance team at Compare the Market shares advice on the steps to take when renting different parts of your property:
“In England and Wales, you’ll need to confirm that your tenant has the right to rent if renting an entire property or a room. You’ll need to provide your tenant with your full contact details as well as an energy performance and gas safety certificate. For further information and professional advice visit gov.co.uk”
“Ensure the property meets all health and safety standards, including gas equipment being inspected annually, electrical items being safe to use, and check that smoke alarms are fitted on every floor of your property.
“Before renting out parts of your home, it’s a good idea to update your home insurancepolicy and inform your insurer about your rental plans, whether it’s a room, a property, or a parking space.
“Be sure to confirm that you have accidental damage cover, protecting you against tenant-related incidents and potential property damage. Failing to update your policy could result in denied claims or insufficient coverage. If you’re renting out your driveway, it’s recommended you write up a contract stating you’re not liable for any damage to a person’s car on your property.
“Finally, when looking to rent out a room in your property, it is worth signing up for the Rent a Room scheme, where you can earn up to £7,500 tax-free income. This is available for both homeowners and renters.”
