HomeCar Insurance'Renting out my driveway earns me £200 a month'

‘Renting out my driveway earns me £200 a month’


As petrol prices continue to accelerate, households are seeking innovative ways to cut their travel costs.

Petrol has surged from an average of 135p a litre a year ago to 167p a litre today, government figures show, and the cost of filling up is expected to remain high for the rest of the year as a result of rising oil prices.

To offset rising costs, some have reduced their car use or sold their car altogether. Below, we speak to three people about steps they are taking to protect against inflation.

Find out more: Nine ways to cut your petrol bill – based on your postcode

I sold my £5,000 car and bought an electric bike instead

Ava sold her £5,000 car for a £900 e bike
Ava [pictured] sold her £5,000 car for a £900 electric bike

Ava Kelly, 36, from the West Midlands, has switched to fully working from home and has swapped her car for an electric bike to reduce travel costs.

“I work for a business utilities and price comparison website, and the company is really conscious about how their employees are navigating soaring inflation,” she said.

“I joined in March, just as the cost of living crisis was really getting going. When I was job hunting, I deliberately chose a firm that would allow me to work from home full-time. Before, a fifth of my salary was taken up by commuting costs.

“The company introduced remote working at the start of the pandemic and has kept it up because it’s been really successful. Personally, I’m more productive working from home – so as well as saving on travel costs I also feel I’m doing my job better.”

Because Ava no longer needs to drive to work, she sold her car three weeks ago and pocketed around £5,000 from it.

“This has provided us with a massive savings boost,” she said. “It was a second-hand diesel Kia Sportage and it guzzled fuel. I was spending around £170 a month just on leisure trips – popping into town or seeing friends. I’m now insured on my partner’s company car, which is an electric Skoda Octavia.”

Ava, who recently moved in with her partner, says their electric bill has gone up by £200 since January.

“Most of this was due to charging the car at home,” she said.

“We recently bought electric bikes and now cycle most of the time when travelling locally. They each cost around £900 but they should last us for five to ten years. They keep us fit and are cheaper to run than the car.

“We obviously have to charge them but we get a few weeks out of them when doing a full charge. I can’t see myself buying another car any time soon.”

Find out more: ‘Buying a Tesla saved me £15,500 in tax’

‘I share my neighbour’s car, insurance costs me £10 a day’

Zarra, London
Zarra, 45, [pictured] says he couldn’t keep up with rising car costs, especially living in London

Zarra Okumephuna, 45, a business support officer for the NHS, lives in Camberwell, south London. He sold his car, a Toyota Yaris, six months ago and now cycles and shares his neighbour’s car to get around.

“Before the pandemic, I was travelling between four offices in London, as well as occasional trips outside the capital. But now I mostly work from home, and so running a car was becoming a burden for me,” Zarra said.

“I live in London so I had to pay the congestion charge which is £15 a day, and it was also costing me around £160 a month in insurance and fuel. Then of course there are the MOT costs, tax and all the other expenses that come with running a car.

“A cycle hire scheme recently came to Camberwell, so I now get around the area by bike. I’ve been cycling in London for 20 years, so I am a fairly confident cyclist, even though I’ve had many accidents.”

Zarra says he’s started car sharing with his neighbour.

“For monthly shopping trips, or to visit friends outside London, I borrow my neighbour’s car. She’s like family to me, so obviously there is a lot of trust and she’s happy to let me use her car.

“I use an app called Cuvva, which offers pay-as-you-go car insurance. It costs me around £10 an hour, and about £60 for the occasional day trip to visit friends in Essex.

“I cover the cost of petrol and fill the tank with extra as a thank-you to my neighbour.”

Because he barely makes any car trips, it works out much cheaper to borrow a car and take out short-term insurance as and when Zarra needs it.

“I don’t see myself needing a car again in future. I’m single and have no need for any regular car trips,” he added.

“Running a car is very expensive and I hope others in my situation think rationally about whether they need one at this time of rising costs.”

Find out more on how to lower your car insurance.

‘I earn £200 a month out of my driveway’

driveway to help offset rising costs.
Mandy and her family rent their driveway to help offset rising costs

Mandy Salt, 46, who lives in Epping, in Essex, with her husband and two children, is renting out her driveway to help offset rising costs.

“We live around five minutes from Epping station, so are obviously well positioned for workers who commute to London by train and want to park near the station,” she said.

“However, people no longer commute to the office five days a week, so we do not have regulars taking the space. Instead, we get lots of ad hoc bookings by listing our driveway on Your Parking Space. We have space for three cars – including our own – and in total we earn around £150 to £200 a month.”

Mandy says the extra income is a huge helping hand during the cost of living crisis. “I stopped work after having my second child, so it’s extra pocket money for me as I organise renting out the driveway.

“I’ve noticed rising prices everywhere, from the weekly shop to our energy bills. And costs are only going to go up further this winter. I think more people should consider renting out their drive, if they are fortunate to have off-street parking, as it’s an easy way to earn a little extra money.”

A major perk about renting out your driveway is that you can get some extra income without paying any tax.

Under the property allowance, you can make up to £1,000 from renting out space on your property such as a driveway, shed or garage before having to pay any tax. If your income is more than £1,000, you’ll need to register with HMRC and fill in a Self Assessment Tax Return.

Find out 13 more ways to boost your income during the cost of living crisis.



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