What Are the Best Ways to Budget for Shared Living in London?

 
04/09/2025

Moving into a shared flat in London is one of the most practical ways for professionals to balance the city’s high living costs with the desire to enjoy everything London has to offer. But even when splitting expenses, it’s easy to underestimate how quickly bills, travel, and everyday costs add up. If you’re planning a flatshare, knowing how to budget properly will not only save money but also make your experience far less stressful.


The best way to budget for shared living in London is to start by calculating your fixed monthly costs, agree on clear rules with flatmates about shared expenses, and use tools or apps to track spending. Planning ahead helps you avoid unpleasant surprises, and choosing the right accommodation partner, such as Right Room, ensures that many costs are transparent from the start.

 

 

 

Understand Your Core Costs First

When you move into a London flatshare, your biggest fixed costs will typically be:


  • Rent: The largest portion of your budget. Shared living helps reduce this, especially compared to renting alone.

  • Utilities: Gas, electricity, water, and internet. Some flatshares include these in the rent, while others split them monthly.

  • Council Tax: Unless you’re a full-time student, you’ll need to budget for this.

  • Transport: Commuting costs can be significant, especially if you travel daily on the Tube.

By writing these out before committing to a property, you’ll know your minimum monthly outgoings. Right Room makes this step easier by clearly outlining whether utilities are included in rent, helping professionals budget more accurately.

 

 

Set Clear Agreements on Shared Expenses

Money issues are one of the most common sources of conflict in shared housing. To avoid problems:


  • Decide upfront how bills will be split.

  • Use a shared banking app like Splitwise or Monzo for easy tracking.

  • Rotate who pays the bill and gets reimbursed, or nominate one flatmate to manage all utilities with everyone transferring money on the same day each month.

These small agreements create smoother living arrangements and prevent misunderstandings.

 

 

Build a Realistic Lifestyle Budget

London has endless opportunities for dining, nightlife, and entertainment, but these can quickly drain your salary.


Create a monthly budget that includes:


  • Groceries: Cooking at home saves significantly compared to eating out.

  • Subscriptions: Music, TV, gym, and professional tools all add up.

  • Social life: Allocate a set amount for going out, so you don’t overspend mid-month.

A useful rule is the 50/30/20 budget:


  • 50% of income for essentials (rent, bills, transport)

  • 30% for lifestyle (entertainment, dining out)

  • 20% for savings or debt repayment

 

 

Think Beyond Rent: Deposits and Moving Costs

One expense many forget is the initial setup cost. You may need:


  • A security deposit (though some properties offer flats with no deposit).

  • The first month’s rent upfront.

  • Moving costs such as furniture, transport, or agency fees.

Right Room can guide you through these costs before you commit, ensuring you’re not caught out financially. Learn more.

 

 

Use Technology to Stay on Track

Budgeting doesn’t need to be complicated. Use apps like:


  • Monzo or Revolut for tracking spending by category.

  • Splitwise for shared expenses with housemates.

  • Excel or Google Sheets if you prefer simple, custom tracking.

Having visibility into where your money goes makes it easier to cut back when needed.

 

 

Factor in Flexibility and Savings

Unexpected costs are part of life in London. Trains get delayed, appliances break, and social plans pop up. Aim to keep a buffer of at least one week’s rent in your savings for emergencies.

This is also why some professionals prefer studio apartments or short-term studios in Southampton, where bills are often included.

 

For example, many listings such as a studio flat Southampton bills included simplify budgeting because you pay one amount each month without worrying about fluctuating utility bills.

 

 

Alternatives to Flatshares if Budgeting Is a Challenge

Flatshares are one of the most affordable ways to live in London, but they aren’t your only option. Learn more.


Depending on your situation, you might also consider:


  • Studio flats for students and professionals: Ideal if you want privacy but still need affordability. Options like cheap studio flats or affordable studios in Southampton can work if your job allows remote work or hybrid living.

  • Student accommodation in Southampton: Often managed by letting agents in Southampton, these come with predictable, all-inclusive costs.

  • Short-term studio Southampton rentals: Flexible for those on contracts or between jobs.

  • Private landlords in Southampton: Sometimes more flexible on deposits and rental terms compared to larger agencies.

Whether you are renting in Southampton or looking at room rentals in London, there are ways to balance cost and comfort. Platforms like Right Room and Southampton rental experts can help compare options and find what works best for your lifestyle.

 

 

Common Questions About Budgeting for Shared Living

How much should I budget for a London flatshare?


 Expect to spend between 40% and 50% of your income on rent and bills. The rest depends on lifestyle and commuting costs.


What’s the safest way to split bills with flatmates?


 Use a shared app or account to keep everything transparent. Avoid relying on verbal agreements alone.


Is it better to choose a flatshare with bills included?


 Yes, if you want predictable monthly costs. While slightly higher rent, it reduces surprises and makes budgeting simpler.


How do flatshares compare to studio flats in terms of budgeting?


 Flatshares are usually cheaper upfront, but studios (like a studio flat to rent in Southampton) may include bills, making long-term budgeting easier.

 

 

Final Thoughts: Budgeting for Shared Living in London

Budgeting for a flatshare in London doesn’t have to feel overwhelming. The key is to know your fixed costs, set clear agreements with flatmates, and be realistic about your lifestyle spending. Adding a buffer for savings and using budgeting tools will make life in a shared home much smoother.


At Right Room, we specialise in helping professionals find safe, affordable, and high-quality flatshares that make financial planning easier. Whether you’re comparing London flatshares or exploring options like studio apartments in Southampton, we connect you with trusted properties and local property experts so you can make confident decisions.


If you’re ready to take the stress out of budgeting and find a home that fits your lifestyle, explore professional flatshares with Right Room today.


 
« Back to Blog