Those who are already comfortably on the property ladder may not realise how hard the housing crisis actually is for those looking to take their first steps into the property market. Many parents of young adults are starting to find out though, as their children begin moving back home.
New research from Nationwide has found that a fifth of young adults are living in their parent’s houses until they are at least 26 years old. A fifth of these people do not pay their parents any rent to live at home either.
The survey found that the number of young adults living at home varies across the country, with only 9% in the East Midlands increasing to a whopping 20% in the West Midland, Wales comes in fairly high at 17%, but London tops the chart with 21% of over 18s still living with their parents.
With soaring house prices, high rental costs, and low paid jobs, young adults are really struggling to save up the deposit required to buy their first house and live on their own. Recent data published by homeless charity, Shelter, showed that around half of tenants couldn’t save money for a deposit, and the 25% of those who could were only able to put around £100 aside each month.
While mortgages are currently cheaper than ever due to low interest rates, the best deals are still kept back for those who have a big deposit. Because of this, young adults are moving back in with their parents in order to save a bigger deposit, and it appears many parents don’t mind.
The study from Nationwide found that although 28% of adults living at home were saving up for a deposit, 30% were not saving up anything. Some families are happy to live together and parents don’t feel the need to push their children out.
A spokesman for Nationwide said:
“The hotel of mum and dad is often staying open for longer than many anticipated, our latest research shows. Rental costs and deposits or the need to save for a mortgage deposit mean that some children understandably have to wait before flying the nest. And, for some, moving out may never be an option.”
While there is always the option to move in with another person or buy a house together, in order to save money, some people are uncomfortable with the idea of living with a stranger and would rather just stay at home in a familiar environment with their family.
Sue Green from Saga, a company that sells insurance and products to the over 50s, says that while parents don’t plan on having their children back at home with them during adulthood, they are quite happy to put a roof over their head if it helps them get onto the property ladder. She says: “children who don’t pay rent may contribute in other ways like buying groceries, family takeaways or doing odd jobs around the home.”
It makes sense for parents to help where they can when it comes to getting their children into the housing market, and if letting their kids live at home helps them save a deposit, then it will benefit families everywhere.