"When disposable income is severely reduced, there are knock-on effects for mental health and loneliness. So this is more than a problem for renters, it’s a problem for the economy and for society too"
- Matt Hutchinson - SpareRoom
Flatsharing is now affordable only for those earning at least £30,120 a year, based on the ‘30% rule’ that recommends housing costs should not exceed 30% of income.
To rent a room in London, an annual income of almost £40,000 is needed to stay within that affordability limit. New data from flatshare platform SpareRoom shows that average-earning 22 to 29-year-olds are increasingly priced out of renting in London, Edinburgh, Oxford, Bath and Cambridge.
The research highlights that spending less than 30% of gross income on rent is no longer achievable for many under 30s. According to the Office for National Statistics (ONS), the gross median annual wage for full-time workers aged 18 to 21 is £22,001 (£1,833 per month), and £31,200 (£2,600 per month) for those aged 22 to 29. Under the 30% rule, their rent budgets would be £550 and £780 per month respectively. A midpoint income of £26,600 (£2,217 per month) equates to a monthly rent budget of £665.
Although a £780 monthly budget covers the UK average room rent of £753, it falls short of the London average of £995, leaving a gap of £2,580 per year. A middle-earning under-30 renter with a budget of £665 would need an additional £1,056 annually to meet the UK average rent.
Flatsharing is often seen as a flexible option, yet affordability now limits where young people can live. The average monthly budget of £780 excludes most 22 to 29-year-olds from renting in major cities such as London, Edinburgh, Oxford, Bath and Cambridge. For 18 to 21-year-olds, whose average rent budget is £550, options are even narrower. Their annual budget falls £2,436 below the national average rent, restricting them to a small number of cities including Liverpool, Swansea, Sheffield, Wolverhampton and Aberdeen.
More young adults are continuing to live with their parents. In 2024, one-third of men and 22% of women aged 20 to 34 lived at home, up 9.9% since 2014. Meanwhile, the number of 16 to 24-year-olds not in education, employment or training but seeking work has risen.
At the same time, the share of young renters has fallen. In 2014, 18 to 24-year-olds made up 32% of SpareRoom’s users, but by 2024 their proportion had dropped to 27%. Among 25 to 34-year-olds, the figure declined from 45% to 42% over the same period as older age groups entered the market.
Rising living costs are putting further strain on younger renters. In a SpareRoom survey of 3,775 tenants in August 2025, 22% of under-30s said they had used overdrafts, and 17% had taken second jobs to afford rent. Both figures were higher than those of older age groups.
Financial dependence on family members is also growing. Over a quarter (26%) of under-30s had received a loan from parents or relatives to pay a deposit, while 19% had needed help covering monthly rent. In comparison, only 49% said they had managed without any financial support.
| Have parents or relatives helped you financially with your current tenancy? | All UK | All London |
Under 30s UK |
| Loaned me money for a deposit | 17% | 19% | 26% |
| Loaned me money for rent in advance | 10% | 11% | 15% |
| Acted as my guarantor | 13% | 13% | 26% |
| Acted as my guarantor | 12% | 13% | 19% |
| Acted as my guarantor | 66% | 64% | 49% |
“In reality, the 30% affordability rule has been unrealistic for a long time," explained Matt Hutchinson, director of SpareRoom. "When rents are 40% or even 50% of income, as is more common today, affording them is challenging and saving for a deposit is out of the question. This doesn’t just delay life plans. If you can’t meet unexpected costs outside of normal expenditure, then you’re more prone to debt."
"And when disposable income is severely reduced, there are knock-on effects for mental health and loneliness. So this is more than a problem for renters, it’s a problem for the economy and for society too.”
He continued, “It’s not only sky-high rents that exclude more under 30s today; there are other barriers to entry. Not everyone can save a deposit equivalent to five weeks’ rent, and many parents can’t afford to help either. The Renters’ Rights Bill seeks to ban the practice of asking for rent in advance – sometimes as much as 12 months’ worth – which will level the playing field. Tenants will also be able to challenge annual rent increases, which can be reduced if the proposed rent is deemed to be above the market value. But that doesn’t tackle the biggest challenge of all which is that market-value rents are already way too high.”
