International students and homestay accommodation hosts need each other!
Why? Because together, they are both the perfect solution to the growing overseas demand for studying at college in the UK. Like the two sides of the same coin, the reality of students seeking affordable high standard accommodation can be met by responsible homeowners with spare rooms who can do with that little extra to pay their monthly bills.
The UK is the most popular destination for students studying English outside of their home country, attracting nearly half of al international students, according to HM Government Report, 2013. The number of “internationally mobile” higher education students coming to the UK is estimated to grow by 3.7 per cent every year until at least 2020.
Hosting – a popular choice
In the years following the 2008 banking crisis all the evidence suggests that the number of householders who have turned to ‘hosting’ has made the activity a popular choice indeed. The reason is not hard to find. The opportunity for both to “live and learn” in an informal family setting is considered a rewarding experience.
And of course – there are quite a few financial benefits of joining a hosting scheme and being paid to provide a room and meals to overseas students. Not least, because under the government’s rent-a-room arrangement you are currently allowed to earn tax-free rental income of up to £4,250 a year or £2,125 for a couple letting jointly. The reason being that the income earned from the rent-a-room scheme is considered as the provision of ‘residential’ accommodation, not ‘guest’ accommodation.
This means that the student occupant is effectively using the room as “a home on a long-term” basis, either on its own or included with other parts of the house. This is different from provision of accommodation to guests for short periods as guest accommodation, which would be taxed as business income and not qualify for ‘rent-a-room’ relief.
The good news is that from 6th April 2016, the tax-free threshold rises to £7,500, which could translate to around £625 per month tax free income. If your rental income is above the tax-free threshold you must complete a tax return and pay Income Tax. However, items such as heating, lighting, wear and tear, repairs or insurance cannot be claimed as an expense.
Comply with a number of key requirements
The Rent a Room scheme requires that a potential host must comply with a number of key requirements, including:
Control and flexibility
International student hosting does allow you control and flexibility over the services you provide. Study courses can vary in length and some students may only require a room for just a few weeks if they’re attending a summer school. However, the more usual arrangement for most students and homestay accommodation providers tends to be along the lines of ‘Half board’ or ‘Full board’ with a student living as part of the family.
Variations on meal plans may also include ‘Half board weekdays’ where a student usually helps themselves to breakfast but sits down to an evening meal with the family or ‘Full board weekdays’ in which a student will expect just a packed lunch during the week. Sometimes a student may also require a light lunch at weekends.
It’s obvious that of all international students, it is those studying English who often prefer to stay with a family on a Hosts scheme. Apart from a more fast track way of becoming more fluent with speaking English there is the added benefit of family life for a younger student when far from home.
And you’re certain to pick up some useful foreign phrases yourself along the way!
