Key facts
- Single individuals can face annual extra costs ranging from hundreds to £10,000.
- Rent, mortgage, bills, and subscriptions are costs not shared by single people.
- Single people receive a 25% council tax discount, not half of a couple's.
- Many discounts, like 2-for-1 cinema tickets and railcards, require pairs.
- Leanne and Sarah bought a house together, splitting costs and mortgage payments proportionally.
- They sold their jointly owned house for a profit after four years, using equity for separate purchases.
Single individuals are increasingly finding ways to mitigate the financial disadvantages of living alone, often referred to as the 'singles tax.' This tax can amount to hundreds or even thousands of pounds annually due to costs like rent, mortgages, bills, and subscriptions not being shared, as well as fewer discounts available for solo consumers.
Leanne and Sarah, friends since school, decided to buy a house together in Kent. Leanne, in her late twenties, found properties too expensive on her own after a breakup. Sarah, also single and renting in Brighton, faced similar challenges with her cabin crew salary. Despite initial hesitation, they consulted a mortgage advisor and purchased a property, splitting mortgage payments proportionally to their salaries and detailing arrangements in a declaration of trust. They shared household bills from a joint account and even some meals, calling their home a 'happy home' rather than a 'forever home.'
Their joint purchase allowed them to build equity and eventually sell the house for a profit after four years, enabling separate home purchases. They credit this arrangement with providing significant financial freedom and accelerating their ability to achieve their goals.
Inspired by their success, Philly launched Cucoon, an online platform designed to match singles for potential joint property purchases, aiming to 'level the playing field,' particularly in the housing market.
Julia Pearson established the Just4One website about nine years ago to address the extra costs solo travelers often face. The platform lists travel providers that do not charge single supplements. Pearson also advocates for sharing items and services with friends, such as borrowing tools or sharing errand trips, to reduce individual expenses. She notes a societal shift towards more sharing and collaborative consumption.
The RAC suggests that single drivers might see lower car insurance premiums by sharing, though this is not guaranteed. Overall, the trend indicates a growing awareness and adoption of collaborative consumption and financial strategies among single individuals to combat higher costs.