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Tenants buddy up with friends to reduce costs of renting

The percentage of tenants choosing to live alone has dropped over the last three years, research suggests. 

A study compiled by Reposit, a deposit alternative supplier, finds that single renters have been hit particularly hard by rent increases since 2021. Back then, the average monthly rent for a one person tenancy was £696 but it reached £877 in 2023 - a rise of £181 or 26%. 

This monetary increase was almost 50% more than the average tenant in a two person tenancy experienced in the same period. Their rent averaged £470 per person in 2021 and £562 per person in 2023 - an increase of £92. 

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In addition, single renters saw the percentage of their take home salary spent on renting jump from 33% to 39% from 2021 to 2023. Based on the UK average salary of £34,476 in 2023 and £31,772 in 2021, single renters were £336 worse off per year in 2023. 

The figures were based on tenancies with an active Reposit across the UK from 2021 to 2023.  

During the same time, the percentage of tenancies for those living as two, three, four and five people increased which suggested single renters were choosing to live with more people to reduce their outgoings during the cost of living crisis.   

The figures showed that back in 2021, 65% of tenancies were for those renting alone but by 2023 this had reduced to 57% - a reduction of 8%. The largest increases of multi-person living were seen among two and three person tenancies which increased by 6% and 1% respectively. 

There were marginal uplifts among four and five person tenancies but less than 1%. 

Ben Grech, chief executive of Reposit, comments: “With escalating rental costs and the cost of living crisis, single renters have been particularly squeezed. Tenants need options such as a deposit alternative product, allowing them to pay one week’s rent as a non-refundable fee instead of the usual five weeks cash deposit which now averages £1,289.

“Importantly, landlords get more protection with eight weeks’ worth of rent while the tenant remains liable for any damage at the end of the tenancy, with any disputes resolved through an independent resolution service within 14 days.”

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    Tenants getting together to share flats a good idea. My first flat was a bedsit and I was working.

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    Agree, but only if you would choose this despite any money concerns, but being forced by circumstances to live with someone else 🤷‍♂️😬. That I would find very stressful, especially in later life.

     
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    My first was digs 6 single beds in one room in Hornsey if you could all it digs gone before breakfast, bus ride 24 stops on tubes and super finish when I got back, hide under the blanket when the fights were on, spare a thought.

  • George Dawes

    A good idea at last

    Should be framed and wall mounted !

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    Okay until the buddies stop paying their share of the rent, which nearly always happens

    Richard LeFrak

    Or bills and food nicked out of the fridge. Washing up etc etc etc

     
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    Says a lot about the sort of people you have as friends Andrew 😂

     
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    I noticed quite a few "sharers" enquired last year when I had a 2 bed place for rent. I did wonder what would happen when one of them decided they could not afford the rent or bills. No doubt it would be extra hassle for landlords. I have found that tenant's problems soon become landlord's problems, and yet tenants consider it none of our business. Hey ho.

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    Joint and several liability backed up by several property owning guarantors who understand the importance of a good credit rating removes most problems in shared tenancies.

     
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    Exactly. If you're not an idiot and have any idea whatsoever of how the legal system works, you wouldn't need to be worried about it. I think I understand your user and now, worried landlord. Worried due to ignorance.

     
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    In 1969 to 1971 I shared a big 4 bedroom flat with 7 other guys (plus several overnight guests) , no LGSR, no PAT, no EICR, no EPC.

    Our biggest danger was food or alcohol poisoning, easily possible because the rent was so affordable.

    Happy days!

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    • L C
    • 05 April 2024 11:10 AM

    In our area its near on impossible to obtain an additional or HMO licence without being referred to then rejected at planning.
    Therefore tenants struggle to find properties then rents continue to rise.

    The government have no idea how their silly ideas implicate the real world.

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    The government have no idea, full stop.

     
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    You don't need an hmo licence for two people sharing.

     
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    That's very true James until those 2 tenants sub let to a 3rd one as they often do

     
  • Franklin I

    The issue of tenants sharing accommodations with friends poses significant legal implications for LLs. While entering into a joint tenancy agreement with two tenants is permissible, introducing a third party creates distinct households within the property, thereby classifying it as a House in Multiple Occupation (HMO) necessitating a license.

    Failure to obtain such licensing can result in substantial fines imposed on LLs, even if they are unaware of the presence of the third party. Additionally, tenants sharing with friends may circumvent proper legal procedures. In instances where breaches are exposed, such as through "Right to Rent" checks, LLs may incur fines of up to £10,000. Consequently, there is a pressing need for the government to establish accountability measures for tenants in such scenarios.

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