Retirement Income Alliance


Over 60 per cent* of people expect to use property to supplement their income when they retire. However the implications and practicalities of raising income from your home are often glossed over. To read a real life case study click here or use any of the links on this page to find more detailed information on using your property to boost your income.

Equity Release

This is an option that is quite often considered. Equity release comes in two basic types; home reversion and lifetime mortgages. Both these options reduce any equity in the home fairly quickly so this option may not be suitable for those who wish to pass on their home as inheritance. See our section on Equity Release for more information.

Becoming a Landlord

Being a landlord and making income from rent while, hopefully, the property increases in value is a dream of many. Buy to let, where you raise a mortgage to buy a property that you rent out, is increasingly popular way to accomplish that dream. Let to buy, which is less well known, can be an integral part of downsizing. Essentially you raise a mortgage on your existing home and use the money to buy your new, smaller property and then rent out your old property. We have more information in our section on becoming a landlord.


Moving to a smaller home is the most common method of increasing income. It is also the most drastic. Many people are emotionally attached to their home and the area they live in. Often downsizing means moving area and what to do with all the ‘stuff’ you have accumulated over the years. For more detail read our downsizing section.

There other ways of generating income from your home that many people are using and you can read the research in the article on making money at home . But listed below are some of the options.

Rent a room

If you are lucky enough to have a decent sized spare room you could consider renting it out. The Government allows you to earn up to £7,500 tax free under the Rent a Room scheme. If the thought of a permanent lodger leaves you cold then you could try temporary, short term guests instead. The rise of sites like Airbnb and Wimdu has seen listing your room online and renting it out to travellers looking for a cheap place to stay a popular idea.

Car parking space

If you live in an area where parking is expensive or hard to find you could rent out your driveway. Sites like JustPark offer a service to find drivers or you could do it the old fashioned way with a card in a newsagent or slips of paper under the windscreen wipers of cars in your local station car park.

Rent out storage

There are a growing number of sites such as Storemates which allow you to rent out your room or loft to store other people's stuff. Be sure that you are comfortable with what’s being stored and its weight if storing in your loft. Also check your home insurance will cover the items against theft or loss.

*Consumer Intelligence June 2014