Rent and Credit > What is a house share?

What is a house share?

Wollit Team3 minute read · Updated 17th September 2024

A house share, also known as flat sharing, is a very common way for people to live together in the UK. This arrangement is especially popular in cities where rent can be very expensive, like London.

In a house share, several people live together in one property. Each person usually rents their own room, while everyone shares common areas like the kitchen, bathroom, and living room. House shares are popular among students, young professionals, and anyone looking to save money on rent.

However, it does come with a few risks, including to your credit score. Let’s have a look at what a house share is, the pros and cons of sharing a home, and how it relates to your credit score.

What types of properties can I share?

You can share different types of homes, including both flats and houses. The type of property only depends on where you live and your budget.

How do I find a house share?

You can find house shares on websites like SpareRoom, Ideal Flatmate, and Gumtree. These sites let you search for available rooms and chat with potential housemates.

What are the pros and cons of house sharing?

There are several advantages to house sharing:

Saves money: Sharing rent and bills makes it cheaper to live in popular areas, especially in cities like London and Manchester.
Social life: Living with others can lead to friendships and a sense of community, which is great for people new to a city.
Shared chores: Housemates can divide household tasks, making it easier to keep the place clean and organized.
Flexible living: Many house shares offer shorter lease terms, so you can move in and out more easily than in traditional rentals.

However, while there are many benefits, house sharing also has its challenges:

Living with others can lead to disagreements about cleanliness, noise, and other lifestyle choices.
Sharing a home means you have less personal space, which can be an adjustment for some people.
If one housemate doesn't pay their share of the rent or bills, it can affect everyone in the house.
And it can lead to financial associations on your credit file, which can sometimes affect your credit rating.

How can house sharing affect my credit score?

Well, house sharing by itself does not directly affect your credit score in the UK.

However, if you share bills or take out a joint tenancy agreement with housemates (for example, a joint rental or utility contract), you may become financially linked with them.

This can happen if you open a joint account or apply for joint credit, which would associate their credit history with yours. From that point on, you will show on each other’s credit report as a “financial associate” – much like a spouse.

If your housemates have poor credit or financial difficulties, this could affect your credit file, as lenders may look at your financial associations when assessing your creditworthiness.

Also – and this is very important – if you're splitting utility bills and one person misses a payment (especially if it's in your name), it could damage your credit score quite a bit.

Finally, if you move often (as it happens when you share a house share) and don’t update your voter registration, then it can lead to a few dropped points, too. Your electoral registration helps lenders verify your identity, which is why credit reference agencies give a bonus if you keep your registration up to date.

To keep your credit score in the best shape possible, here is what you can do:

Close the joint accounts whenever you move out of the house share, and submit a “Notice of Disassociation” to each of the three main credit agencies (Experian, TransUnion, Equifax) to remove your financial link to the other flatmates.
Make sure all bills are paid on time, and have a clear agreement on who pays what and when. Setting up a direct debit also helps.
Finally, work on your credit score.

Luckily, now there are many apps that can help you build and improve credit.

One such app is Wollit. Wollit is an app available both on Android and iOS, and it works by reporting a fixed-fee monthly subscription as a loan repayment to all three credit reference agencies.

This gives you a chance to continue building your own credit history and improve your credit score without the fear of financial associations and without having to be linked with someone else’s credit rating.

Plus, it reports your rent payments to Experian, UK’s largest agency, so you can show lenders that you’re responsible and can handle paying large bills on time. This lets you make the most of your rent while you’re preparing to become a homeowner and leave house sharing days behind.