The Squeeze on Income and the Need for Side Hustles
The rising cost of rent is becoming a major financial burden, with many renters in the UK spending a significant portion of their income just to secure housing. In some of the country’s least affordable areas, this figure is eye-watering. Renters in Kensington and Chelsea, for instance, now spend over 52% of their income on rent, while those in Manchester allocate 45.6%, and in Brighton, it's 44.7%. These areas have emerged as some of the hardest-hit in the UK housing market, alongside boroughs like Westminster, Hackney, and Camden, where renters are also feeling the pressure.
For many young people, this trend has created a difficult financial landscape. VibePay data shows that the typical user now spends 39% of their income on rent or mortgage payments—putting a serious strain on their ability to save, invest, or reach financial milestones. As wages struggle to keep up with the pace of rising rental costs, many are turning to multiple income streams, side hustles, and freelancing just to make ends meet.
In cities like Manchester, where housing costs are now higher than some London boroughs, the pressure is especially acute. Young professionals, gig economy workers, and those running small digital businesses are increasingly relying on flexible work and entrepreneurial ventures to sustain their livelihoods. From freelancing to selling products online, many are supplementing their income to offset high housing costs.
As rental prices continue to climb, the need for affordable housing solutions and financial support for young people has never been more urgent. The ongoing struggle to balance living costs with personal financial growth remains one of the biggest challenges facing the next generation.
Join the conversation on our Instagram page and share how you’re managing in this current housing climate. What is your rent costing you each month?
