Most Profitable Things to Rent Out in the UK
Your driveway could make you £200 a month.
Your spare room could earn £7,500 a year tax-free.
Your car could bring in £400+ a month.
And most people leave all of it sitting there doing nothing.
I’ve tried plenty of side hustles over the years — surveys, cashback stacking, flipping, blogging. Some are worth it. Some are time-heavy. Some barely move the needle.
Renting out things you already own? That’s one of the few ways to make money without learning a new skill or investing cash upfront.
Here’s what actually works in the UK — ranked by profit potential.
Quick Comparison: What Makes the Most Money?
What You Rent | Realistic Monthly Income | Effort | Best For |
|---|---|---|---|
Spare Room | £400–£900 | Medium | Homeowners with space |
Entire Home (Short-Term) | £800–£2,000 (seasonal) | High | Tourist areas |
Car | £300–£650 | Medium | Low-usage drivers |
Driveway / Parking | £80–£250 | Low | Cities & commuter towns |
Tools & Equipment | £20–£200 | Low | DIY collectors |
Designer Clothing | £50–£300 | Low | High-value wardrobes |
Let’s break them down properly.
1. Rent Out a Spare Room (Up to £7,500 Tax-Free)
If you have a spare bedroom, this is by far one of the most profitable things you can rent out in the UK.
Under the government’s Rent a Room Scheme, you can earn up to £7,500 per year tax-free renting out a furnished room in your main home.
That’s per household — not per room.
In London, rooms commonly go for £700–£900 per month.
In major cities, £500–£800 is typical.
Even smaller towns can fetch £400+.
Platform to use:
This isn’t passive income. You give up privacy. You share your space.
But financially? It’s extremely hard to beat.
2. Rent Out Your Entire Home (Short-Term)
If you go away often or live somewhere desirable, short-term letting can generate serious money.
Hosts on Airbnb average around £70+ per night nationally — far more in hotspots.
Two fully booked weeks could easily clear £1,000.
But here’s the catch:
• Cleaning
• Guest messaging
• Linen
• Council regulations
And in Greater London, you cannot rent your entire home for more than 90 nights per year without planning permission. Platforms automatically cap listings once you hit that limit.
High income potential. Higher effort.
3. Rent Out Your Car (£300–£650 Per Month)
If your car sits unused most of the week, it’s just costing you money.
Car-sharing platforms like Hiyacar allow you to rent it out when you’re not using it.
They report average earnings around £400–£500 per month in strong areas.
Smaller, reliable cars (Fiesta, Corsa, Fiat 500) often get more consistent bookings than flashy luxury models.
You’ll need to factor in:
• Wear and tear
• Insurance terms
• Cleaning
• Availability
But if you’re working from home and barely driving, this can offset insurance, tax and even finance costs.
4. Rent Out Your Driveway or Parking Space
This is one of the lowest-effort options on the list.
If you live near a station, hospital, stadium or city centre, commuters will happily pay for guaranteed parking.
£3–£10 per day adds up quickly.
£100–£250 per month is realistic in busy areas.
Platforms:
No cleaning. No lifestyle disruption. Just someone parking on your drive.
If you’re in London, Manchester, Birmingham or near a commuter line, this one is seriously underrated.
5. Tools & Equipment
I’m guilty of this one.
Buy a drill for one job. Use it once. It sits in the garage for three years.
Instead of collecting dust, list it on Hygglo.
You can rent out:
• Power tools
• Cameras
• DJ gear
• Projectors
• Musical instruments
Smaller items might earn a few pounds per day. Higher-value kit can earn £20–£40 per booking.
It won’t replace your salary — but it’s easy money from stuff you already own.
6. Designer Clothes & Accessories
Clothing rental is growing as people look for alternatives to buying expensive outfits for one event.
HURR focuses on higher-end brands (typically £150+ original value).
They estimate lenders often recoup the item’s purchase price within 4–5 rentals.
Other platforms include:
This only works if your items are genuinely desirable. Fast fashion won’t make much.
Tax Rules (This Is Where People Get It Wrong)
There are three separate UK allowances, and they are not the same thing.
Activity | Tax-Free Limit | Allowance |
|---|---|---|
Lodger in your home | £7,500 per household | Rent a Room Scheme |
Driveway / Storage | £1,000 | Property Allowance |
Tools / Car / Clothing | £1,000 | Trading Allowance |
Important points:
• The £7,500 Rent a Room limit is per household. If you split income with a partner, it becomes £3,750 each.
• You generally cannot stack the Property Allowance on top of Rent a Room for the same property income.
• If you earn over £1,000 from casual trading or property income, you’ll need to declare it via Self Assessment.
Most people stay under the limits.
But if you’re pushing £500–£900 per month from multiple streams, don’t ignore this.
What’s Actually Most Profitable?
In order:
- Spare room
- Entire home (if allowed)
- Car rental
- Driveway
- Tools & equipment
- Clothing rental
If you want maximum income and don’t mind lifestyle change, spare room wins.
If you want low effort with minimal disruption, driveway rental is probably the sweet spot.
Final Thoughts
Most side hustles require time.
Renting out your stuff requires awareness.
Before signing up for another survey site or chasing the next app, look around your house.
You might already own something that can quietly generate £100–£500 a month.
And that’s far easier than starting from scratch.
FAQs: Renting Out Your Stuff in the UK
Is renting out your driveway taxable in the UK?
Yes — but there’s a tax-free allowance.
Driveway or garage income usually falls under the £1,000 Property Allowance. If you earn under £1,000 per tax year from renting out space, you don’t need to declare it.
Earn more than £1,000 and you’ll need to register for Self Assessment and declare the income (though you can deduct expenses instead of using the allowance).
How much can I earn tax-free from a spare room?
Under the Rent a Room Scheme, you can earn up to £7,500 per year tax-free from renting out a furnished room in your main home.
That’s per household, not per room.
If you share ownership with a partner, the allowance is split to £3,750 each.
Can I use the £1,000 allowance and the £7,500 Rent a Room Scheme together?
Generally, no.
If you’re using the Rent a Room Scheme for income from your home, you can’t stack the £1,000 Property Allowance on top for the same property income.
You use the scheme that applies to your situation.
Is renting out your car worth it?
It can be — but it depends on usage and location.
If your car sits unused most weekdays, renting it out via Hiyacar or similar platforms could generate £300–£500 per month in strong areas.
However, you must consider:
• Insurance terms
• Wear and tear
• Cleaning time
• Availability
For low-mileage drivers in cities, it often offsets running costs. In rural areas, demand can be weaker.
Can I rent out my whole house on Airbnb all year?
Not in London.
If your property is in Greater London, you’re limited to 90 nights per calendar year for short-term rentals unless you get planning permission.
Platforms like Airbnb automatically cap listings once you hit the limit.
Outside London, rules vary by local council.
What’s the easiest thing to rent out?
Driveway or parking space.
It’s low effort, requires no cleaning, and doesn’t affect your privacy.
If you live near a station, hospital or city centre, it can quietly generate £100–£200+ per month with minimal work.
What’s the most profitable thing to rent out?
In most cases, a spare room.
Thanks to the £7,500 tax-free Rent a Room Scheme, it’s usually the highest-earning and most tax-efficient option — provided you’re comfortable sharing your space.
Do I need insurance when renting out my stuff?
Most rental platforms offer some form of protection, but it’s rarely unlimited.
Always check:
• Excess amounts
• What’s excluded
• Whether your home or car insurer needs to be informed
Assume there’s risk — and price accordingly.
