'I rent out two rooms to make ends meet': Retiree turns to lodgers amid rising costs

Temie Laleye
Fri, 24 Apr 2026 11:16:02 +0000

Retirees across Britain are increasingly turning to lodgers as a means of boosting their income amid mounting financial pressures.

The number of homeowners living alongside tenants has surged by 38 per cent since 2023 alone.

According to analysis from rental platform SpareRoom, the share of those aged 65 and over letting out spare rooms has grown threefold since 2015, reaching 3.3 per cent in 2025.

Rising stamp duty costs and a shortage of appropriate smaller properties are blocking many pensioners from downsizing, leaving them with few alternatives.

Nigel Bishop, of buying agency Recoco Property Search, said: "A lot of homeowners hesitate to sell their property as the cost of selling and moving can be discouraging."

Research from Nationwide reveals that more than two-thirds of people (69 per cent) now consider independent living financially out of reach.

Flo, 65, from London, is among those who have embraced this arrangement out of necessity.

She told Nationwide: "I own my own home, but began renting out two of the rooms because I was facing financial difficulties and needed an additional source of income.

"I can't say that I've saved a significant amount of money, but having lodgers has helped me maintain a better quality of life."

The experience has not been without difficulties. "Having lodgers has sometimes been challenging, mainly due to personality differences and, more frequently, disagreements over household chores.

"I expect to maintain room rentals until I am in a position to retire."

The cost-of-living squeeze is fundamentally altering how Britons of all ages approach housing.

This affordability crisis has pushed the typical age of those sharing accommodation up to 35.

In response, many are forming what researchers term "rally households," pooling resources with others to manage expenses. Around one in ten have returned to their family home, while a similar proportion have moved in with former partners.

Some 12 per cent have relocated back to live with relatives specifically to reduce outgoings.

These unconventional living arrangements are taking a significant toll on personal wellbeing. Close to half of those in shared housing—46 per cent—report that their circumstances have damaged their relationships and private lives.

Fifteen per cent have suffered from stress and anxiety, whilst 14 per cent describe feeling trapped in their situation.

Tensions between housemates affect eight per cent, and seven per cent have postponed major life decisions as a result.

The stigma surrounding shared accommodation weighs heavily, with 27 million Britons admitting embarrassment about where they live.

More than a fifth of Gen Z respondents struggle when measuring themselves against peers on social media, while 19 per cent of millennials find workplace conversations about housing uncomfortable.