Rent out your driveway or parking space UK: how much and the tax
How to make money renting out your driveway, parking space or garage in the UK with apps like JustPark and YourParkingSpace, what you can earn, what to check first, and the £1,000 property allowance.
By SimonIn this guideShowHide
How it works
You list your space on a parking app with photos, directions and when it is available. Drivers book and pay through the app, which takes a commission and pays you. You can also let a space to a local commuter or business for a monthly fee.
Options include:
- Daily or hourly bookings for commuters, shoppers and visitors
- Monthly lets to one regular driver, which is less hassle
- Event parking near stadiums and concert venues, which can pay well on match and gig days
How much can you earn?
Location is everything. A space next to a busy station, in a city centre or near an airport earns far more than one on a quiet residential street. Search the apps for spaces near you to see what similar spaces charge.
What to check first
- Your mortgage lender or landlord. Some mortgages and tenancy agreements do not allow it without permission.
- Your lease, if you own a flat with an allocated space.
- Your home insurance. Tell your insurer, as letting your space could affect your cover.
- Access. Make sure drivers will not block neighbours or your own car.
- Local rules. Some councils and estates have restrictions on using spaces this way.
Tax on parking income
Renting out a parking space is property income, not trading income.
- £1,000 or less a year: covered by the property allowance. No tax, and you do not need to tell HMRC.
- More than £1,000: register for Self Assessment. You can deduct the £1,000 allowance or your actual costs, whichever is higher.
- From 6 April 2027: property income tax rates rise to 24%, 44% and 49%, following the October 2026 Budget.
The Rent a Room scheme does not cover a parking space on its own. Read more about renting out a room.
Tips for more bookings
- Clear photos of the space and entrance, in daylight
- Exact directions and what3words or a map pin
- State the size, whether it is covered and any height limits
- Turn on instant booking if you are comfortable with it
Common questions
Is it legal to rent out my driveway?
Generally yes, if you own the property and nothing in your mortgage, lease or deeds stops it. Tenants need their landlord's permission.
Do I need to tell my insurer?
Yes, tell your home insurer. Letting out a space may need to be added to your policy.
Can I rent out my garage for storage too?
Yes. Storage apps let you rent garages and spare rooms for people's belongings. The same property allowance applies.
This is general information, not personal tax or financial advice. Tax rules change and depend on your circumstances, so check GOV.UK or speak to an accountant before acting.