Homeowners who face grim economic prospects after the spending cuts unveiled by the Government can ease their worries by renting out a spare room, or even an empty settee.

Stephen Rapoport, founder of website Crashpadder.com, said: "Anyone with a spare room can rent it out - either on a short or long-term basis - with a view to making anything between £4,056 (Manchester) and £6,968 (London) each year.

"Crashpadder.com facilitates short stays from one night to three months, with average bookings lasting less than a week. It's an ideal option for those who don't fancy a long-term lodger but need some extra money from an otherwise redundant bedroom."

Prices range from £15 to £70 a night, depending on space and facilities available for guests. Paying guests must enter credit card details to ensure their identity is verified before arrival.

Under the Government's rent-a-room scheme, anyone can make up to £4,250 tax-free each year by renting out a spare room. Parking spaces can earn vital cash for homeowners, too, said Stephen.

"According to ParkatmyHouse.com, anyone with a spare parking space in Birmingham can make up to £230 each year, and up to £487 in London. Initiatives like this help to unlock the value of space that would otherwise be left to languish."

On average, added Stephen, a homeowner could potentially earn £375 a year for a parking space advertised on ParkatmyHouse.co.uk