Cost of living crisis sees volume of single person tenancies fall

New research has revealed that the percentage of tenants choosing to live alone reduced by 8% between 2021 and 2023.

Related topics:  Landlords,  Tenants
Property | Reporter
4th April 2024
Tenant 723
"With escalating rental costs and the cost of living crisis, single renters have been particularly squeezed"
- Ben Grech - Reposit

New data, compiled by deposit alternative specialists, Reposit, found that single renters had 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.

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.

Interestingly, 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, CEO of Reposit, said: “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 8 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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