Renting out a driveway or garage is becoming a much more familiar concept as thousands of people become part-time landlords to earn extra income. London is consistently top of the rental charts in terms of potential income: the average value of a space in the capital is £1,848 per annum or a healthy £154 per month. That’s enough to cover a family holiday over the course of the year or make substantial repayments on a more pressing mortgage or loan perhaps.

London will always remain at the top of the charts simply due to supply and demand: there are an increasing number of motorists who require an ever increasing number of parking spaces. Whilst congestion zones and charging may have reduced the number of vehicles in to particular areas, there is a resultant ripple effect on the surrounding areas where further pressure is put on the parking and transport facilities.

The most expensive area in London is the Brompton road area (SW3) where a space can earn the owner upwards of £538 per month. Mayfair (W1K) and Leicester Square (WC2) are also particularly profitable areas for property owners with parking spaces earning £348 and £298 per month respectively. Although the top ten rental areas in London are perhaps better known for being commercial centres than residential areas, property owners in all locations could earn extra income by renting out their driveway or garage. For example a driveway or allocated bay in the popular Lavender Hill area in Clapham could make up to £129 per month. Similarly, a property owner could rent out a garage within a quarter of a mile of Highbury and Islington tube station for up to £200 per month.

Extra income can be made across entire UK It’s not just a London story as many property owners are seeing respectable incomes from this type of activity across the entire UK. In fact, Liverpool is second to London in terms of the average rental income potential with property owners earning as much as £1,476 per year or £123 per month.

The fact that Liverpool is second to London for parking space letting may surprise some but the price is mainly dependent on the availability of spaces, or lack thereof. In fact despite Manchester lagging just behind Liverpool in third place, the parking space rental market is actually larger in the city than in Liverpool which often means landlords can find tenants more quickly.

Parking space letting agents calculate the rental price of a parking space in much the same way as a residential estate agent agrees the rental price of a property with a landlord. There is usually a maximum value for a space in a particular area or postcode and other factors can influence the price too, such as proximity to facilities or congestion zones. Security is another important factor: spaces or bays with key-pad entry, electronic gates or even CCTV can demand a premium.