Ok, I will give you that London prices are silly, but it isn't the norm as far as the UK goes. And again I shared a flat, why does no one under 30 expect to do this any more?
Well, people live in flatshare a lot. I don't think you can ask why they don't do it when they do it ^^
One cultural thing I noticed in London and I assume in the UK at large is the lack of studios. There are plenty of 1 bedroom but there aren't studios (200-300 sqft).
If you go to Paris for comparison, you will see an incredible amount of studios.
It makes a world of difference when you get 25+, you make a living and you want to be independent (forget about dating and getting married otherwise). In the absence of studio, you're forced to pay up a lot to get a one bedroom (more than what low end jobs earn so they're stuck with flatmates).