20 Ways You Can Earn Passive Income in the UK


Passive income is one of the most attractive ways to earn money. Without putting in a lot of effort, you can secure additional earnings that will make your life easier. There are numerous ideas you can choose from to earn passive income UK; decide on one (or several) that is best suited to you and can fit into your schedule. Interested? Keep on reading to discover all the best strategies to get extra money!

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What Is Passive Income?

Passive income is money that is obtained without putting in considerable time and effort.

This doesn’t mean that there’s no effort used at all – the same goes for the amount of time you need to dedicate to see a cash return. In some cases, you’ll need to put down an initial investment and wait for it to generate income. However, if you’re off to a good start, you might even get to the point of earning money while you sleep! It’s also important to mention that what is passive income in the UK may differ in other countries; our article will focus on the UK specifically.

To fully understand the passive income meaning, you should be aware of possible ways you can receive money regularly without having to work a 9 to 5 job.

Why You Should Establish a Passive Income Stream

This type of income is one of the best wealth-generating tools, and it can serve as a safety net if you lose your job and are left without an active income source. An even better option is establishing multiple passive income streams in the UK.

Remember that this is not a way to earn a fortune overnight. Instead, this type of income can grow over long periods and one day amass substantial sums of money.

In any case, having access to various types of passive income will make you less reliant on your primary source of income and allow you to achieve financial independence.

DID YOU KNOW? Passive income has to be reported in the UK. If you don’t report your income, you may be persecuted for tax evasion. Luckily, you can easily report earned funds by filling out a self-assessment tax return online or filing it in the main SA100 tax return form.

20 Passive Income UK Ideas Which Make Being Wealthy Look Easy

As we said, there are numerous ways of earning extra money. If you’re someone that wants to earn more but don’t know how to go about it, don’t worry! We’ve compiled a list of ideas that can help you gain passive earnings, so keep reading to find the best way for you.

#1 Investing

One of the best ways to earn additional income is through investments. Whether you’re buying shares or stocks, put down an initial sum and patiently wait for a return. This has been made easier thanks to some great apps that allow you to buy shares. Some alternative passive income ideas for the UK public are investing in gold or cryptocurrencies, waiting for their value to rise, and selling them.

#2 Buy Property and Rent It Out

Buying a property requires a substantial investment on your end, and buying a house in the UK can be a complicated process. However, once you’ve completed the process, you can adjust it for a rental and have a steady source of monthly income.

#3 Lease Out Spare Space

Whether you’re renting out a spare bedroom, advertising storage space you’re not using, or leasing parking space you don’t need, you can earn money from others. Possibly the best passive income in the UK comes from renting space to clothes that you’re not using since it requires little effort.

#4 Rent Out Useful Items

Most people own plenty of items they’re not using regularly, or at all. If you’re one of them, consider renting items you’re not using. You can rent almost anything – your bicycle, car, truck, boat, even your yard! Even though this isn’t one of those passive income ideas that will make you rich, you should receive enough to supplement your income.

#5 Sell/Rent Digital Ad Space

A large portion of the passive income in the UK comes from earnings made from selling digital ad space. If you have an online presence (website, blog, YouTube channel, etc.) you can rent digital space to those interested and receive compensation for doing so.

#6 Sell Digital Products

Before you begin selling digital products, you need to create them! What you create depends on your skills, but it could be anything. Mobile apps, digital art, an ebook – if it’s your original creation, you can sell it online and have it become a source of money.

#7 Create an Online Course

Online courses are increasingly popular, so if you’re wondering how to make passive income, consider creating an online course in your area of expertise. A course requires time and effort, but once you’re done, you can sit back and get paid every time someone signs up.

#8 Dropshipping

A popular way of earning extra money is dropshipping – the process of shipping products to customers acquired from a third party. This is a profitable business since it doesn’t require sellers to keep products in stock, and they don’t have to pay for products before they’ve been paid themselves.

#9 Start a Blog

Blogging is a good way of creating passive income; publishing high-quality content regularly can generate a lot of traffic to your blog which you can earn funds through. There are several ways to monetize your blog – display advertisements, publishing sponsored content, or affiliate marketing.

#10 Create a YouTube Channel

One of the most lucrative ways of generating extra income is through YouTube. If you think you’ve got what it takes, start your own channel and publish video content regularly. When you hit a certain number of subscribers or watch time, you can monetise your channel and earn money for every view.

#11 Buy and Sell Domain Names

One of the lesser-known ways to make passive income is through buying and (re)selling domain names. Domain names can be cheap, so you can afford to buy and resell them for a higher price whenever someone shows interest in the one you own.

#12 Licence Your Photos

The increased use of digital content calls for more demand for stock photos; you can use this to your advantage. There are stock photo websites where you can upload photographs you’ve taken and earn a small fee when someone wants to use or buy them.

#13 Create a Podcast

The best passive income can come from doing something you love! If you feel passionate about something, use it to your advantage; create a podcast, talk about your interests, and earn money in the process. If your podcast’s content resonates with people, you can even include ads or be sponsored by partners to establish good cash flow.

#14 Licence Your Music

If you enjoy creating music, this can be your way to earn additional income! Music is licenced for all sorts of things, including commercials, podcasts, and YouTube videos. You can licence your music, upload it to a library, and earn royalties when someone uses it.

#15 Start an Etsy Store

Are you creative and want to earn a passive income online? We have the answer for you – start an Etsy store. You can make handmade goods in your spare time and put them up for sale on the Etsy platform. If people like what they see, they’ll buy your product and your hard work will pay off!

#16 Sell Used Belongings Online

Most of us have clothes, jewellery, accessories, books, and unused electronics sitting at home. How to make a passive income from these items? Instead of having these items cluttering your home, you can sell them online and make a profit. All you need to do is take some photos and upload them to one of the numerous sites and apps designed for this purpose – just keep in mind that the service may charge a small fee.

#17 Start a Print-On-Demand Store

If you’re a designer or entrepreneur, you can always start a store for on-demand printing. You can collaborate with suppliers and customise clothing, posters, and books to sell them per order. This is a low-risk endeavour, so why not give it a go?

#18 Peer-To-Peer (p2p) Lending

This is one of many passive income investments that require you to have a certain amount of money to get started. This income strategy is organised through specialised websites that match you with individuals seeking to borrow money. You can lend them funds and earn substantial sums from the interest rate.

#19 House Sitting

When people go out of town, they usually need someone to take care of their house – water the plants, collect the mail, feed the cat, etc. Spend some of your time and attention in someone’s place and you’ll earn money in no time.

#20 Refinance Your Mortgage

Finally, the quest for earning passive income in the UK might end by refinancing your mortgage. This sounds unusual, but interest rates in the UK are at a historic low; refinancing your mortgage and paying lower rates can help save large amounts of money.

DID YOU KNOW? YouTube channels can bring in significant earnings. The highest salary of a UK Youtuber is £61,713 a year, while the lowest is £16,178. The national average salary of a Youtuber in the UK is £31,595 yearly!

Key Takeaways

The passive income definition states: Passive income is income earned without extensive effort and time.
There are numerous ways of earning additional income and achieving financial security.
Passive income is not that easy, though; it requires some time, effort, money, or expertise on your end.
In some cases, relying on active income is the best course of action.

How to Establish Passive Income Streams

Adding extra money to regular income is something we all welcome, and the best thing about it is that you can have multiple revenue sources besides your paycheck. This can boost your savings, pay off debt, or simply be spending money.

However, keep in mind that while there are numerous passive income opportunities, there are also certain requirements. Usually, these opportunities require a time or money investment. Once you put in the required steps in your passive income generator, you can relax and enjoy the payments you receive.

There are various ways you can establish streams of income, but remember that you have to be patient; sometimes you might even have to try multiple sources before seeing something. It’s also important that you’re realistic, so don’t get your expectations too high. This source should provide you with supplemental income; it can rarely become a primary source.

DID YOU KNOW? Some of the world’s most successful businesses started out as side hustles! Apple started out as a side project, and social media platforms Facebook, Instagram, and Twitter were passive income sources before they became big.

Active vs Passive Income: Which One Suits You Best?

Making more money is an alluring idea, but it’s not always possible since some day jobs require too much time and energy. On the other hand, these jobs usually pay well and people are satisfied with the active income they receive every month.

When a day job takes up too much time and energy, stop thinking about how to generate passive income and focus on yourself instead of burning out for some extra cash.

If you have time on your hands and you’re determined to earn more, though, you can find a way to earn a passive income. Keep in mind that you need to be patient and wait to generate a return, as you won’t be immediately rewarded.

Ultimately, it’s your decision whether you’ll focus on earning an active income or seek passive income – just ensure you’re doing what’s best for you by choosing one of the best passive income ideas for 2022!

DID YOU KNOW? There are two tiers of passive incomevolume-based and fixed. Fixed income is what you get from renting out a property, while volume-based income is what you receive from a blog or a YouTube channel.


Passive income is an excellent way to supplement regular monthly income, and if you’re successful, this can become your source of primary income. If you’re hesitant about venturing into new endeavours, you can learn how to make passive income in the UK and establish a stream of additional income. Good luck!


How can I make £1000 a month passive income?

If you want to establish regular income from a passive income source, the best thing would be to rent out a property or invest in the stock market in something that generates a regular return.

How can a beginner make passive income?

Beginners can start generating passive earnings by creating something and selling it online, starting a shop, licensing music and photographs they already own, or performing everyday tasks for other people like house sitting. There are numerous ways beginners can earn passive income UK!

What are the seven streams of income?

The seven streams of income are: earned income, business income, interest income, dividend income, rental income, capital gains, and licensed income.


I learned a lot about finance after working for a digital marketing company specializing in investing and trading stocks, forex, etc. After that, I got exposed to other verticals such as wealth management and personal finance, which further improved my understanding of the financial world.

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