Contrary to popular belief, living alone is often more expensive than living with a roommate, partner, or family. These days, being single isn’t just an emotional or relationship status but also comes with its own set of financial challenges. While many assume that being single means saving money on gifts for holidays, birthdays, or anniversaries—and not having to compromise with another person—the reality is that the cost of living solo often outweighs those savings.
However, recent reports based on calculations from the data obtained from the Office for National Statistics (ONS) show single British households are spending £2500-£3000 annually. This can lead to even more expenses when you live alone, but when you have someone to split the bills 50/50, you may have more opportunities to save.
As we are already struggling with the exorbitant cost-of-living crisis, finding someone to divide the household expenses and chores with can be a great way to live in a financially responsible manner.
Number of People Living Alone Increases
The number of people living alone in the UK has risen dramatically since the late 1990s, and by the end of 2039, single-person households are expected to rise to 10.7 million. The number of people living alone generally belongs to an older age group of 45 to 64 years old. This might be because a huge portion of the older population may be divorced or outlive their partners.
When you live alone, you are solely responsible for paying utility bills and rent. Studies show that more single people prefer to live in rented accommodation over owning a house. On average, people who live alone spend £266.26 more per month than those who share living costs with someone else. This has led to increased borrowings across the country, with people applying for loans just to make ends meet.
While it is okay to get a small loan every now and then to cover emergencies or sudden expenses, in the long run, this could hurt your financial health.
Single Tax is Real
While it’s not an official tax from HMRC, the so-called “singles tax” is a term used by financial experts to highlight the premium single-person households pay for everyday living.
When you split the bills, things appear more affordable, especially now when prices of even the most basic amenities have skyrocketed. For instance, couples pay £628 for phone connections, while singles pay almost £200 more. Yeah, life for sure isn’t fair. London, Cambridge, Oxford, St Albans, and Edinburgh are a few of the major English cities where being single and living alone is the most difficult.
Rent and Mortgage Fall Squarely on Your Shoulders
One of the main disadvantages of living alone is that you need to pay for rent or mortgage alone. For example, if the rent for a flat is £1200, sharing it with a flatmate or partner will cost £600 per person. That is an annual savings of £7200. This money, when contributed towards your pension scheme, will yield a much better return.
The only respite you might get as a singleton is the lowered council tax. You get 25% off your council tax when you live alone. However, in the grand scheme of things, it doesn’t have a large impact on your finances.
Cost of Utilities Remains the Same
Yes, you read it right. Whether you live alone or with someone else, certain household expenses remain the same. You still need to turn on the same number of lights to brighten your home, and water and gas usage don’t change much between a one- and two-person household. Broadband costs also don’t increase significantly when another person is added to the plan.
For example, if you pay £400 per month on utility bills, when you have someone to share it with, the amount is automatically reduced by half. Groceries, toiletries and kitchen appliances can also be shared with a flatmate, helping you further reduce expenses.
A single British household spends only £15 more than a two-person household. Buying in bulk is more affordable than buying smaller portions and helps reduce food wastage and overconsumption.
Smaller Accommodation Doesn’t Equate to Cheaper Accommodation
The cost of renting is directly proportional to the demand. Landlords, especially in cities and near universities, hospitals and other popular areas, understand that there is a growing demand for single-person accommodation, such as a 1BHK flat or studio apartment. These often have a higher cost than double-room accommodation.
In Conclusion
One thing we can establish as a fact is that living alone is comparatively more expensive. If you do not have a partner or family to live with and are unable to bear the cost of living alone, you could consider moving in with a friend or colleague.
If you’re renting a flat, it’s important to check with your landlord before subletting or bringing in a roommate to share the space. Getting permission first helps you stay on the right side of your tenancy agreement.
