The wealth divide in UK flatshares is causing problems for 43% of flatmates, according to research by flatshare site SpareRoom.
Almost half (48%) of flatsharers earn less than £30K a year, while 16% are on salaries north of £50K, and the wealth gap in their households has fuelled arguments for many.
The top five causes of wage gap-related tension between flatmates are:
- Energy and heating usage (77%)
- How much each flatmate should contribute to bills (52%)
- How much each flatmate should contribute to communal supplies, such as toilet roll and washing up liquid (48%)
- How much each flatmate should pay in rent (39%)
- Whether or not flatmates should pay for a cleaner (35%)
A fifth (20%) of UK flatmates estimate the difference in pay between the highest and lowest earning flatmate in their household is more than £20K, while 9% believe the wage gap is more than £30K. Only 5% think all flatmates in their own households earn about the same.
How salaries compare across the UK
Room rents have risen 30% over the past five years to reach £747 a month. Based on 30% being the maximum recommended proportion of income spent on housing costs, a flatmate would need a gross annual minimum salary of £29,880 to rent an average room affordably. Yet almost half of flatmates earn less than £30K, putting pressure on personal finances at a time when the cost of food, fuel and energy has also climbed.
SpareRoom's data shows how income levels, and room rents, vary between the wider UK and the capital:
- Less than £30K: 48% of UK flatsharers, compared with 32.7% in London
- £30,000 to £49,999: 36.1% of UK flatsharers, compared with 43.1% in London
- £50K or more: 15.9% of UK flatsharers, compared with 24.2% in London
- £75K or more: 4.3% of UK flatsharers, compared with 6.3% in London
- Average room rent in the first quarter: £747 across the UK, against £978 in London
When it comes to buying communal supplies, a fifth (20%) of flatmates say their household splits the cost equally, 21% take it in turns to buy household supplies, the quality of which depends on what each person can afford, while 30% have no communal supplies at all and prefer to buy and use their own. Some 29% say they have missed out on an opportunity to rent a place with a friend because of the difference between their salaries.
Matt Hutchinson, director of flatshare site SpareRoom, said rising costs have changed who chooses to share. "It used to be the case that a good salary would get you onto the housing ladder, or else renting alone or with a partner," he said.
"But the cost of renting and living is now so high, sharing makes sense for people on higher incomes too.
"Sadly, it's become much less viable to rent on a lower salary. We know from our analysis of SpareRoom users by age that younger adults, who generally earn less, are being priced out of the rental market altogether.
"While those earning more than £50K could likely afford to rent solo, it may mean compromising on location, disposable income and the ability to save. For those on higher-than-average salaries, sharing is often a tactical choice.
"Renting an average room in a UK flatshare costs £747 per month, while the ONS puts the average UK one-bed flat rent at £1,123. That means you're saving around £4.5K a year on average if you flatshare.
"It's not always a financial decision though. Some flatsharers on higher salaries still choose to live with others. For those new to an area or leaving their family home for the first time, a ready-made group of friends is a great antidote to loneliness.
"But as our survey shows, wage gaps in flatshares can also be the root cause of household arguments if outgoings aren't sensitively managed. It's well worth sitting down as a group to work out the fairest way to split rent, bills, and shared supplies so everyone's comfortable with the arrangement. There's no right way to do things, it's just about finding the best way for your household."
