Tenants Share To Cut Living Costs

Tenants Share To Cut Living Costs

Private Rental Sector Tenants
still struggling to make ends meet

With the amount of would-be tenants looking for shared accommodation is reported to be up by 31% since 2011, suggesting that UK tenants are looking at sharing property with other tenants in order to counter increasing living costs and ensure that the rent is paid, however, Rent Guarantee Insurance is a better idea.

Research by house-share website Spareroom.co.uk found that for single tenants, renting property by themselves is not really an affordable option, so many tenants are turning to flat or house sharing in a bid to save cash.

The website recently surveyed its users and discovered that 51% had returned to flat and house sharing after previously renting property in the UK PRS alone or with a partner.

Spareroom tell would-be tenants that huge financial savings can be made by renting a room in a shared rental property, rather than renting the whole property.

The average cost of renting a one-bedroom flat in the majority of the UK, is £12,669 (GBP) per year (including bills), while the cost of renting a room in a shared rental property is just £6,079 (GBP) with bills included, a saving of £6,590 (GBP) per year.

In London renting a one-bedroom flat has an average cost of £19,633 (GBP) per year, including bills, while a room in a shared rental property costs an average of £7,767 (GBP) including bills, meaning sharing tenants could save £11,866 (GBP).

The research also found that the number of tenants over 35 who were willing to share had risen by 25% over the last 12 months and the number of tenants between 45 and 54 in shared rental properties had also increased by 50%.

The average age of a tenant living in shared property in the UK is now 26.9-years-old but, up from an average of 25.8-years-old in 2005, however in London the average age of a sharing tenant is 27.2, up from 26.6 in 2005.

Landlords can offer would-be sharing tenants some degree of financial security by using Rent Guarantee Insurance to protect their rental income providing that the applicant agrees to comprehensive tenant referencing, then the tenants proportion of the rent is covered, should the tenant’s financial or employment circumstances change during the tenancy.

Matt Hutchinson, director of Spareroom, said: “While flat and house sharing is embraced by most young people as an affordable way to live, some prefer to make the leap to renting a whole property before they finally look to buy. That’s understandable but, for most, staying in shared accommodation would allow them to save for a deposit far more quickly, helping them achieve their ultimate goal, owning their own property, much sooner. The standard of flatshares is improving fast as landlords realise demand for quality shared accommodation is on the rise. The idea that, by flatsharing, homeownership could be within reach will be incentive enough for many to stay in shared accommodation for a bit longer.”

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