Updated October 2026
In short: For most young adults, the most affordable first home is a room in a shared house or a lodging arrangement, followed by a small flat once income grows. If you claim Universal Credit and you're under 35, you'll usually get the shared accommodation rate, which assumes a room in a shared home. Schemes such as London Living Rent and shared ownership can help you move towards buying.
| Option | Typical cost level | Pros | Cons |
|---|---|---|---|
| Lodging with a resident landlord | Lowest | Bills often included, flexible | Fewer rights; living with the owner |
| Room in a shared house (HMO) | Low | Social, bills often included | Shared facilities; check the HMO licence |
| Studio flat | Medium | Your own space | Higher cost per square metre |
| London Living Rent or intermediate rent | Below market | Rent set below market; route to ownership | Income limits; limited supply |
| Shared ownership | Varies | Buy a share and pay rent on the rest | Service charges and resale rules |
Make your application stronger
- Proof of income or student finance
- A UK guarantor, or a guarantor service
- References from previous landlords or university halls
- Savings for the deposit (max five weeks' rent) and first month's rent
- Right to rent documents
Your rights as a renter
Since 1 May 2026, landlords can't ask for more than one month's rent in advance or take part in bidding wars, and can't refuse you because you receive benefits. Lodgers have fewer rights than tenants, so make sure you understand the arrangement before you move in.
How Fraser Bond helps
| 1 | Register Budget, areas, move date and who you'll live with. |
| 2 | Match Rooms, studios and starter flats from landlords who welcome first-time renters. |
| 3 | Apply Help with references and guarantors. |
| 4 | Move in Protected deposit and a clear tenancy. |
Looking for your first home?
Tell us your budget and we'll help you find somewhere affordable.
Speak to our teamRelated guides
- Cheap studio flats to rent in London
- London Living Rent explained
- Housing options for 16 and 17 year olds
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