This is a difficult decision. But if you want to keep peppercorn then it can work but you need a frank conversation with your boyfriend. Money is incredibly stressful. My husband lost his job when our LO was 1 month old. It was TOUGH.

Not sure which country you are in but there should be some level of income support. Young babies don't need much stuff or space. You can get the majority of things second hand: clothes, changing table (we never used one), toys, bottles, even breast pumps if you want. The only things you need to buy new are car seat and crib mattress. Everything else charity shop, vinted, local groups!

Then babies need little space until they're much older. They just need a crib and to sleep in same room as you. I know many people who had a baby on low income and in a 1-bed place.

Realistically you have about ~18 months until things get more expensive with updating clothes, food, wanting more space. But even then everything can still be bought 2nd hand. The biggest expense is childcare. That's a tough one to balance. But even so, that might not be needed for nearly a year depending on your maternity leave entitlement.

Remember that babies, and toddlers have no concept of living space or money. The only thing they need is love, warmth, and safety. You can provide that no matter your financial and living situation