It’s certainly not the first time we’ve heard of two or more people cramming into an apartment to save money on rent, but a recent article in the UK’s Financial Times claims that the trend of “hutching up” is growing across the pond.
According to writers Sarah O’ Connor and John Burn-Murdoch, the steep increase in the cost of London housing has forced many recent graduates to bunk up with multiple roommates to save on rent. These graduates, who will earn a starting salary of just over $36K per year, can expect to spend more than a third of their gross income on rent – a standard definition of unaffordability – for a two-bedroom unit in nearly 75% of inner London.
Even worse, more that 50% of those areas remain unaffordable for those renting a shared four-bedroom house, according to the article. What about those people who prefer to live alone? Forget it. One-bedroom flats anywhere in outer or inner London are considered unaffordable based on the definition above.
According to Financial Times, private sector renting is the least affordable housing type across all of England and yet the number of households renting privately has doubled to almost four million since 2003 as social housing and home-ownership opportunities have dwindled. With an increase in demand in the private sector, more folks – particularly those between the ages of 17-24 – have reached out for help. In fact, the Citizens Advice Bureau says the number of people in this age group asking for assistance has grown by 76 percent over the last six years.
Rent It Today wants to know: Have you ever moved in with another person to save money on rent? Have a funny story on this topic you’d like to share? We’d love to hear it! Please share it in the comments section below or on our Facebook page!