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Friends team up to buy homes and tackle 'singles tax'

Some single people are choosing to buy homes with friends to overcome financial hurdles, including the 'singles tax', which can add significant extra costs.

  • An estimated 8.6 million people were living alone in the UK last year, representing nearly a third of all households.
  • Official figures from 2024 show 18.5 million people, or 36.8% of the population aged 16 and over, had never been married or in a civil partnership.
  • The Homeowner's Alliance states that benefits of buying a home with friends include a larger deposit and budget, and split costs.

Many single individuals face additional costs for housing, bills, food, and holidays, a situation sometimes referred to as the 'singles tax'. Estimates suggest this could add anything from hundreds of pounds to an average of £10,000 extra per year.

In response, some single people are opting to purchase homes with friends. Leanne and Sarah, for example, bought a house together in Kent after finding properties too expensive to afford individually. They split mortgage payments proportionally to their salaries and detailed their arrangements in a declaration of trust.

After four years, Leanne and Sarah sold their property for a profit, using the equity towards separate future purchases. They stated that neither would have been able to achieve what they did without their joint property ownership. Their success has inspired the creation of Cucoon, an online platform designed to match singles looking to buy homes together.

Beyond housing, single people often encounter higher costs for household bills, subscriptions, and travel, with solo travellers frequently paying a single person supplement. While a single person pays 25% less council tax than a couple, this is not half the amount.

Why this matters: The 'singles tax' impacts a significant portion of the UK population, with 8.6 million people estimated to be living alone last year.

What this means for you: If you are single, you may face additional costs for housing, bills, and other expenses. Exploring options like co-buying with friends or utilising platforms designed for singles could help mitigate these financial burdens.

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