03 Jan 2019
2.5 Million Adults Live with Their Parents Due to Financial Challenges
Children might fly the nest at the first opportunity they get as teenagers, but it seems that millions are returning as young adults in order to save money for a first mortgage. As many as 2.5 million adults live in their parents’ home, new research by Churchill home insurance has revealed.
This new research found that a quarter of these adults have moved back into the family home to save money for a house deposit, while 12% did so after graduating from University, and a further 12% returned home because they could no longer afford their rent.
The majority of parents welcome their children home, with 28% pleased they could spend more time with their them and 26% pleased to give them the opportunity to save for a deposit on their own home and find the best mortgage rates. However, not all were as pleased to have their children return home, with 34% of parents reporting a negative outcome following their child having moved back into the family home.
The biggest cause of disputes were their children and their partner failing to help out around the house, with one in seven parents feeling annoyed they did not help with housework and 11% feeling as though they took advantage of moving home by treating it as a hotel.
Financial Struggles
When it comes to the finances, less than a third of parents (30%) charge their child rent to help them save to get back on the property ladder. Among those who do have to pay their parents, the average rent is just £115.60 per month – far less than the UK average of £928. Partners are even less likely to contribute towards the rent, with under a fifth (18%) being charged for staying with their partner’s parent/s. Even those who do pay get a good deal, with the average rent charged coming in at just £109.90.
A spokesperson for Churchill said: “Moving back into the family home is becoming ever more popular and is often the only choice for young adults who are trying to save up for a house deposit of their own. “While it is surprising that so many have opted to move back in with their parents with their partner in tow, this does allow couples to save more while still living together.
If your child is thinking about moving back into the family home, it is important to make sure you inform your insurer and update your home contents insurance to take into account for their possessions, as this could increase the value of the items kept in your home. It is also sensible to consider adding personal possession cover to your policy, as if your child or their partner are planning to take their personal belongings out with them, such as a laptop or phone you may want to ensure these are covered for accidental loss or damage or theft.”
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