Flat-sharing to Home-owning, the MTL Way

Millennials have been labelled the renting generation for a while now. Living in a major city as a millennial means you’re likely to be burning a lot of your money in the rental bonfire. So the question becomes, how the hell are we expected to buy a place of our own?

Hello again, it’s the Money Tree Lady with another one of my regular guest posts. As you may know, I am soon to be a graduate, MTM and I are also moving in together in mid-June 2017.
 After three years of being in a long distance relationship, you can imagine how excited we are to not only be in the same city but in the same flat! For many couples, the transition from uni to professional life involves finding a place of romantic solitude. No more competing for shower time, no wondering who ate your pack of ginger nut biscuits and never again walking into a kitchen you have just cleaned to find it in a state. We have made the decision to sacrifice this luxury, to get out of ‘generation rent’ as soon as possible. There is nothing I hate more than throwing money at someone else’s mortgage, and for this reason, we aim to finish saving for a house by August 2020 (fingers crossed).

Renting a bog standard 1 bed flat in London will set you back £1,246* on average per month. With a flat share, MTM  and I are paying under half this at £600 per month. This means extra £s, $s and €s to throw at our savings for a house – the majority of which we are putting into a LISA and passive income streams; enabling two millennials to save a 20% deposit for a 2-bed house (somewhere inside the M25 / London) within 39 months.

Living in a flat share is saving us a huge £25,194 in rent over this period. Compounded at 5% this equates to £27,408.71.

As well as the huge financial positives, there are many social benefits too. Renting a 3-bed flat and sharing with other people means we’ll have a bigger social space. We hope to have lots of people round for dinner and drinks – saving us money going out for food! Also being in a flat share encourages us not to get too comfortable in our current situation, which will motivate us to save hard so we can eventually live on our own, in a place that we own.

The renting generation is facing an uphill struggle, there’s no denying that. Crazy house prices, stagnating wages and youth unemployment have left millennials truely screwed! But don’t allow yourself to be dragged into this ‘generation rent’ bracket. By educating yourself on the best way to get yourself a house, establishing what you can honestly afford and finding ways to save money like it’s running out, you really can wade out of the renting generation.

* According to Homes & Property ‘Renting in London’ January 2017

** by ‘sufficient’ I mean if you’re income is within the ballpark of the average salary based on region, you’re likely to


  1. Wow, £25K is some serious money and a decent chunk towards a house deposit. I definitely think you’re making the right choice living in a flat share. Good luck and everything crossed for you to buy a house in August 2020.

    1. Hi Darren,

      Thanks for reading. I knew going into a flat-share for 3 years was a big sacrifice, but when you work out how much you’re saving over this period it really is a no-brainer. & thanks for the support, we have worked out this date is achievable but at the same time optimistic. I always think it’s better to have goals that push you because there is a good chance you can achieve it.

      Money Tree Lady

  2. It’s crazy to think how much the convenience of living with just your boyfriend/on your own could cost you. £27 000 would be a huge setback in your financial goals. I wish you both the best of luck in the next stage of your life.

    & 3 years in a long distance relationship?? I’m really interested in how you made that work?

    1. Hi Hannah,

      To be honest, I was shocked when I saw the figures. Makes you wonder why everyone isn’t doing this? Thank you so much, it’s been a long time coming.

      I’d say the most important thing to make a long distance relationship work is both people making an effort. It was hard but I feel Money Tree Man & I are stronger because of it.

      Thanks again for reading, MTL

  3. Well done you guys on flat sharing. I love looking at the savings that you get doing one method vs another. It’s really hard to get a deposit together nowadays, and so many people are moving back home with parents in order to do so.

    1. Hi Francesca,

      Thank you, we’ll be sure to let you know if we make a success of it over the next three years! Yes, it’s so good for us to share tactics, we’re all aiming for the same thing and there are so many different paths people can take to get there. A good friend of ours lived at home while working full time, he is now well on his way to getting a deposit together which is fantastic!!


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