Could alternative housing save you money?

Alternative housing options, such as canal boats and live-in guardianship, may offer the opportunity to live in a city at a fraction of the usual cost. We share two stories and consider some pros and cons.

Housing is often a renter’s largest expense. A 2023 study found that private renters in England could expect to spend around 34% of their income on rent – and that figure could rise to as much as 57% in London.

Renters seeking to cut down on this cost may think their only options are moving to less expensive areas or staying with family, but there are alternatives for those willing to consider them.

The right place at the right price

'You've got to be in for a bit of squalor,' says Rufus, 33, a musician who lived as a guardian from 2017 – 2018. 'It was kind of a glorified squat.'

Live-in guardianship is, in fact, an agreement to stay in an unoccupied building as security for the owners. Live-in guardianship is subject to specific legal terms and conditions that vary by jurisdiction. Ensure you fully understand your rights and responsibilities before entering such an agreement.

'There were two types of people who lived in the guardianship,' he explains, 'bubbly, creative types who wanted a unique space – and others who just couldn’t afford to live anywhere else.'

His first room cost £500, all-inclusive. 'I need a ton of space for keyboards and things, so it worked for me,' he says.

Charlie, a 34-year-old carpenter, was also looking to lower his housing costs.

'I was paying £1,500 in Peckham for a one-bedroom flat and a workshop,' he says. 'But I had friends who lived on a narrowboat. The boat always seemed really nice, so I started considering it seriously.'

After fixing up and selling his first boat, he was able to purchase his current boat, where he now lives with his apple head chihuahua, Basil.

Embracing a new everyday life

'I’m not afraid to throw myself into mucky situations,' says Charlie.

'When my boat’s exhaust broke, it was £500 for the parts. It would have cost another £500 at least for the labour, so I was determined to do it myself. The more things break, the more I’m able to fix them,' he says.

Charlie’s monthly expenses are low – just £170 for his continuous cruising licence, with fuel and maintenance costs on top. And he embraces the requirement to move every two weeks as an opportunity for adventure. 'I’d like to get to the Lake District,' he says.

Short-term solution or long-term lifestyle

For Rufus, guardianship didn’t stay cost-effective indefinitely. When a new company took over the building halfway through his tenure, 'they put a lot of effort into making it nice and much more of a home,' Rufus says.

'But that came with a rent increase.'

While he sums up the experience as 'very much a means to an end,' he looks back on it fondly.

'I got to move to London, I got to meet lots of people, and while I didn’t get to save, I did get to live,' he says.

'I thoroughly enjoyed it. I thrive in big communities and really like communal living.'

Charlie admits that narrow boating may not be for everyone, particularly during winter. But 'it’s so cosy when you get the fire going.'

While he’d like to find a place with a little woodland and build himself a cabin, he has no plans to come ashore permanently any time soon.

'As long as I’m physically healthy, I don’t see myself coming off the boat,' he says. 'I love it so much.'

Whatever you decide to do, look after your money. Chase's easy-access saver account lets you start saving with as little as you like.

18+, UK residents. A Chase current account is required to open a saver account.

Recommended reading

• Could you retire to a hotel or a cruise ship?
• The ADHD tax
• The cost of moving as a renter

Disclaimer: The Hub is intended as a knowledge portal to provide information on a range of topics. This article is for information only and does not constitute advice.