• It would take an additional 20 years for a single person to save for the average mortgage deposit than it would a couple
• Those in relationships spend approximately £611 less per month on essentials than single people.
• After essential spending and tax, those in a couple are able to save £291 each per month, compared to £138 for the average single person.

22 July, 2024, LONDON –

The cost of living crisis has pushed budgets to extremes over recent years, and sadly those who are single will have likely felt the pinch much more severely than those in a relationship.

According to new research from finance site finder.com, it would take an additional 20 years for a single person to save for a house deposit in the UK than it would for a couple.

With the average house deposit in the UK reaching a staggering £42,450 in today’s market, it would take the average single person approximately 26 years to save the money for a deposit using just their savings.

In contrast, those in a relationship who can save more on a monthly basis, and split the deposit cost between two, would be able to reach this target in just 6 years.

‘Single tax’ is crippling the ability of millions to save for their future

The study revealed that the costs of essential outgoings are £611 lower on average for those in a relationship than for those who are single. This comes as recent estimates from the ONS suggest that over 8 million people live alone in the UK.

Factoring in the cost of rent, council tax, essential bills and groceries, the average single person can expect to shell out £1,426 per month in the UK. On the other hand, those in a couple who can split much of this essential spending, can expect to spend just £815 per month on the same items.

This disparity also has huge implications for the saving capabilities of these individuals. Based on an average UK salary of £1980 after tax, those in a relationship would have £1,164 leftover after their essential spending, compared to just £553 for singles.

Assuming you aimed to save 25% of the money left over, those in a relationship would be able to put away £291 per month, or £3,493 per year. However, those who are single would save significantly less at £138 per month, or just £1,660 per year.

Commenting on the findings, Louise Bastock, financial wellness expert at personal finance comparison site finder.com said:

“I’m a happily single woman, living in my own place, arguably thriving. But when my boiler, fridge, and washing machine all had to be replaced earlier this year, I found myself daydreaming about an imaginary other half who could help shoulder the financial burden.

I’ve always prided myself on being financially independent, but suddenly I was acutely aware of the “singles tax” – the idea that singletons face a higher cost of living than those in relationships.

The tricky thing is there’s not a whole lot you can do about the singles tax. And, if you’re happily single, you almost feel like you don’t have the right to complain. But there are still plenty of ways to safeguard your finances as a single person – or, frankly, even if you’re in a relationship, but your finances are not equal or shared.

• The first is savings. Having a personal safety net is so important; we always recommend having at least 3 months living expenses saved and stashed away. As our research found, it takes a lot longer for someone with a single income to build this kind of fund, but you can accelerate this process by putting your money in a high-interest savings account – you can earn up to 7% (AER) with Santander’s Edge Saver or first direct’s Regular Saver if you meet the T&Cs – to make that money work even harder.
• Look out for singles discounts. Single residents in England and Wales could be entitled to a 25% discount on their council tax. When booking your hols, keep an eye out for accommodation options that charge per occupant – you could get a double room, for a single-person price.
• Share your subscriptions (where eligible). One thing I always lean on is the idea that just because I am single, I am not alone. Hopefully you’re surrounded by a lovely tribe of friends and family, who might happily share some of those financial burdens with you. I share my Amazon Prime and Netflix subscriptions with a whole bunch of my besties. And you could always add your brother or best bud to your car insurance to score a little multi-policy discount.

The singles tax can often slip under the radar. So, if you’re feeling the squeeze compared to your coupled-up pals, try and initiate an open conversation to talk about budgets and what you can afford.”

To see the research in full, please visit: https://www.finder.com/uk/banking/cost-of-being-single

Methodology:

Finder analysed the latest available figures on household spending to calculate the average cost of essential items including groceries, rent, council tax and utility bills.

The average UK salary was taken from the latest ONS figures for July 2024.

Savings were calculated based on an individual setting aside 25% of money left from their monthly salary after any essential spending.

The average house price was taken from the latest ONS figures, and a deposit of 15% was applied.