- 28% of adults between 20 and 34 were living at home with their parents or guardian during the coronavirus pandemic(2)
- Despite challenges in raising a house deposit, young adults are paying £315 to live at home, research finds(3)
- BUT with adults hoarding £5,000 worth of valuables, on average, many don't pay for their own insurance cover
- Majority of adults still living at home are saving up to move out, but some admit to saving for 5 years or longer
- Confused.com offers step-by-step guide to buying your first home, as research reveals a worrying lack of knowledge around financial support
The number of adults living at home with parents has increased by 20% in the past 10 years, new data shows(1). research reveals the cost of moving out is keeping people at home.
And further research shows that more than 2 in 5 (43%) adults currently living at home claim their current living situation is because they can’t afford to move out. That’s according to a new survey by Confused.com of 600 UK adults who are currently living at home with their parents. This research comes as new data reveals the number of adults aged 20 to 34 living at home jumped from almost 3 million to 3.6 million between 2011 and 2021(1). This is the equivalent of 24% of adults in this age group living with parents in 2011, increasing to 28% last year, according to new ONS data.
With the cost of living rapidly rising, it's likely 2022 could see figures jump even higher, especially if the past 2 years are anything to go by. In fact, both 2020 and 2021 saw figures reach the highest recorded since 1996. In both years, 28% of adults aged between 20 and 34 were living at home(2), perhaps due to the financial difficulties imposed by the pandemic. And with household bills becoming increasingly more unaffordable, it's likely some people may opt to move home to save on money. Similarly, we could see many moving home to support their family through what is expected to be a financially difficult year.
It seems the cost to move out is putting a lot of adults off the prospect of finally flying the nest. But for many respondents, living at home doesn’t mean they're getting away with not paying their way. Almost 2 in 3 (64%) said they paid their parents rent, and 59% also contributed to additional bills. Those who pay rent fork out £182 per month on average to their parents. But almost 1 in 4 (23%) pay £200 or more. Meanwhile, those who contribute to bills cough up £133 per month on average. This means the average cost of living at home for many is £315(3) - a significant amount less than the price of renting or buying elsewhere.
It seems parents are typically charging more now than those with children who have already left home. Additional research into adults who used to live with their parents beyond the age of 18(4) and paid rent were charged £190 in rent in comparison. And those who paid towards additional bills were charged £178, on average. It may seem slightly harsh for parents to charge their children rent, especially as the reality of saving for a deposit is seemingly getting harder. However, 7 in 10 (70%) adults who lived with their parents during adulthood claimed that paying rent and bills helped them understand the value of money before living independently.
However, while many are paying towards bills, fewer people currently living at home are contributing towards their own insurance cover. Only 1 in 5 (20%) of those currently living at home pay towards the cover of their contents. This is particularly concerning as the total average value of items owned by adults living at home is a whopping £5,180. This is because most own high priced items such as smartphones, their own television and laptops. Many might expect this to be covered under their parent’s policy, which could leave them underinsured if they tried to make a claim.
But for some, living at home is purely a cost saving exercise. Almost half (47%) of those surveyed claim they’re currently saving to buy a place of their own, while almost 1 in 5 (18%) are saving up to rent. Although, it seems that this is still a lengthy process. While those currently saving have been doing so for 2 years, on average, more than 1 in 6 (16%) have been saving for 5 years or longer.
While saving the money for a deposit may seem like the hard part, it’s no secret that moving out for the first time can be a daunting experience. However, for first-time buyers, the process is notoriously confusing, loaded with overwhelming jargon and a lot of financial considerations. Worryingly, more than 1 in 4 (26%) adults who are currently living at home are unaware of the free financial advice available to those looking to buy. Similarly, many are unaware of the different schemes available to help them get onto the property ladder. In fact, more than half (54%) admit to having little to no understanding of stamp or land duty costs. And 1 in 2 (50%) are blissfully unaware of how much the legal process could cost them.
With this in mind, Confused.com's experts have compiled a step-by-step guide to buying a home for the first time. The guide lays out each step of the process and outlines how much buyers could expect to pay. And for those in the process of saving, Confused.com offers tips for saving the right way, from setting up ISA accounts, to finding deals to bring down outgoings.
Keeping a budget tracker and selling personal items seems to be the most popular way of saving money (38%). And almost 2 in 5 (37%) are keeping their entertainment subscriptions to a minimum. But more than 1 in 3 (36%) avoid social events where possible while 1 in 4 (26%) work extra hours to keep their savings topped up.
Living at home may seem like a cheap luxury, and for some might be the only option as the cost of living proves to be unaffordable. But there are ways for potential homeowners to save up for a deposit or to help towards additional expenses, with plenty of financial advice or support available.
Confused.com home insurance expert, Jessica Willock, comments: “There are many perks to living with parents - cheap rent, the occasional cooked meal and constant company. But for some, this is purely because the cost of living has become very expensive, and getting on the property ladder seems like an impossible task. And this is possibly why we're seeing a record number of people in their 20s and early 30s living at home.
“But moving out is an extremely daunting experience. You’ve saved up the deposit, but what next? Worryingly, so many people are unaware of the additional costs or tasks associated with buying your first home. While paying towards rent and bills can prepare you for the financial commitment of living independently, the home-buying process can really take you by surprise.
“It’s an amazing accomplishment knowing that you’ve taken that step to becoming independent, even if you’re moving out from your parents for the second or third time. But it doesn’t need to be overwhelming. To help break this down, we’ve outlined the step-by-step process of buying a home, including all the different fees you can expect.”
ENDS
Media information:
Confused.com press office:
Chloe.Ostrolenk@confused.com
Bryony.Ranson@confused.com
Chloe.Alonzi@confused.com
Launched in 2002, Confused.com was the UK's first digital marketplace for car insurance and is one of the leading brands in the sector, generating over one million quotes per month. It has expanded its range of comparison products over the years to include home insurance, van insurance, motorcycle insurance, and car finance comparison, as well as a number of tools designed to save consumers money.
Confused.com is not a supplier, insurance company or broker. It provides an objective and unbiased service. By using cutting-edge technology, it has developed a series of intelligent web-based solutions that evaluate a number of risk factors to help customers with their decision-making, subsequently finding them great deals on a wide-range of insurance products, financial services, utilities and more. Confused.com’s service is based on the most up-to-date information provided by UK suppliers and industry regulators.
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