Ceredigion homeowners wanting to generate an extra income could earn hundreds extra a week by renting out a room on Airbnb, new research has revealed.

The research analyses Airbnb data across the country to determine the Welsh counties where residents can earn the most for their spare room.

Ceredigion ranks joint second with Pembrokeshire, with a spare room rented through the bookings site typically earning an average of £60 a night in both counties, a total of £420 a week.

Top ranking county, Gwynedd, was only just in front with an average room rental of £63 a night. The average weekly rate across Wales is £332.

Amidst the cost-of-living crisis in Wales, people are increasingly searching for alternative ways of generating income.

Searches for ‘how to make money’ and ‘passive income’ have increased by 17 per cent and and 21 per cent respectively compared to last year.

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For those with underutilised space in their homes or gardens, renting out a room for a short stay let can be a great way to make some additional cash.

The new research released by Crown Pavilions has revealed exactly how much people in Wales can earn from renting out their spare room on Airbnb, and in which counties they can earn the most.

The study analysed Airbnb data across Wales to reveal that the north-westerly county of Gwynedd was the area where people can expect to fetch the most money from renting out a room on Airbnb, with an average earning of £63 per night.

Ceredigion and Pembrokeshire followed, both with an average earning of £60 per night.

Across Wales, on average, people could expect to earn £332 per week by renting out their spare or garden room.

The Rent a Room Scheme allows residents to earn up to a threshold of £7,500 per year tax-free from letting out furnished accommodation in your home.

This is halved if you share the income with your partner or someone else.

You can let out as much of your home as you want.

The Rent a Room scheme applies to furnished rooms let out to lodgers or as guest house or bed and breakfast rooms.