More than two-thirds of people say saving for a deposit is tough because of high rents, the Compare the Market study found. Three-quarters said rising rents as a big concern
More than half of cash-strapped renters believe their richer flat mates should pay more – as many admit they’ve taken on a second job or side hustle just to afford rent. A candid 54% of Brits believe higher earners should contribute more towards shared household costs, as 50% reveal they’ve taken on additional work to afford rent.
Even with these extra efforts, many feel they’re falling short on where they expected to be financially. Six in 10 (61%) said they thought they would be living independently by now, either renting alone or owning their own home.
More than two-thirds (68%) say saving for a deposit feels out of reach because of high rents, while 71% point to mortgage costs and high property prices as barriers to homeownership.
Research from Compare the Market highlights the growing pressures on renters as the cost of living continues to pinch. Of the 2,005 renters quizzed, more than two-thirds (68%) worried about high demand and limited supply, and 74% said rising rents are a major concern.
In light of this, 73% believe more needs to be done to make renting more affordable, with renters spending on average 30% of their income on their rent. With the pressure unlikely to ease in the current market, renters are having to compromise.
Six in 10 (62%) who live in a shared home say they’ve stayed longer than they wanted solely to save money, while 51% rely on financial support from family or friends to afford rent. Cost remains the primary driver behind shared living, with the most common reason being that renting alone is simply too expensive (36%).
Others say they share the split bills due to the cost of living (31%) or to save to buy a home (29%). Despite the financial reasons, for more than a quarter (28%) location also plays a role.
Others value the social side with 22% enjoying sharing with others. A fifth (21%) said they prefer living with friends over family while 19% want to meet new people. Managing shared expenses isn’t always straightforward, especially when housemates may not have known each other before moving in.
The research reveals 59% say they feel uncomfortable chasing a housemate for money they’re owed, while 61% admit they’ve covered more than their fair share of a household cost when someone else hasn’t paid. Among those who have picked up extra costs, food and groceries are the most common expenses (55%), followed by household bills (53%), toiletries (40%), cleaning costs (40%), shared subscriptions (35%) and furniture (33%).
Disagreements over money are sometimes driven by unpredictability and unclear expectations. Those questioned said higher-than-expected bills are the most common trigger (29%), followed by housemates not contributing to shared items (28%) and disputes over how to split costs (26%).
Different working patterns can make things even more complicated. More than a third (35%) still split bills equally despite differences in working from home, while 27% adjust contributions based on how much time people spend at home. A third (34%) say they rely on an informal shared pot, while 27% use a formal joint account, while 39% don’t use any shared or joint system at all.
With budgets under pressure, many housemates are increasingly looking for ways to cut costs. Energy and utilities are the most common areas where people are searching for deals (51%), followed by groceries (50%), household essentials such as cleaning products (45%), broadband (41%) and subscriptions (38%).
It’s not just financial challenges that causes friction, day-to-day living habits can be just as much of a challenge. The most common complaints about housemates are that they leave the kitchen untidy (28%), make the bathroom a mess (22%) and don’t pay household bills on time (16%).
Noise levels (15%), disagreements over shared food costs (14%) and eating food without permission (13%) also regularly cause issues. Having partners stay over can add another layer of tension for one in ten (11%) in shared living.
The biggest frustration cited is lack of privacy (17%) followed by feeling uncomfortable (16%), cleanliness concerns (15%) and the impact on utility bills (15%). Disputes with landlords are another common challenge, particularly around tenancy deposits.
The most frequent issues include disagreements over wear and tear (31%), cleaning or end-of-tenancy charges (28%) and unclear or administrative fees (25%).
Charlie Evans at Compare the Market said: “Our research highlights the reality of modern shared living, where rising costs not only put pressure on finances, but also on housemate relationships. With many taking on second jobs, relying on support from family or staying in shared accommodation longer than planned, it’s evident that high household costs and rents are making it harder for people to live independently and get on the property ladder.
“While some pressures are unavoidable, there are practical steps housemates can take to better manage costs. Being transparent about how bills are split and planning ahead for shared expenses can help reduce friction, while shopping around for deals on essentials like broadband, energy and insurance can help make a meaningful difference to overall household spending.”
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