5m adults still live with their parents

Millions of adults are still living with their parents because they can’t afford to buy a property.

According to Skipton Building Society, five million adults still currently live in their family home.

And this is partly because the price of property in their area means moving out seems out of reach.

In fact, 98% of people who haven’t yet moved out can’t afford a typical first-time buyer home in their area.

And even if they did manage to buy a home, 97% would still end up spending more than they can afford on basic costs like bills and mortgage payments.

Parents letting adult children live rent-free

More than one in three adults at home currently pay rent to their parents.

But many mums and dads are letting their adult children live rent-free because of their financial circumstances.

For example, a third of adults living with parents said their income is too low or unpredictable to afford it.

Meanwhile, a fifth said they’re temporarily rent-free because they’re recovering from a financial setback.

But despite not having to cover rental costs, many still feel that affording a deposit remains a long way off.

On average, adults living at home have just over £11,500 saved, and more than half believe they’d feel ready to move if their income was more stable.

Parents counting the cost of children staying at home

Unsurprisingly, this is having a knock-on effect on parents, as many would like to move to a smaller home.

Estimates from Skipton show that if parents with adult children could downsize, they could save an average of £2,400 a year in rent and unlock an average of £72,400 in equity.

And that equity could amount to 60% of non-property wealth for lower-income households.

Staying at home takes psychological toll

Beyond the financial strain, living with parents can have an emotional impact.

More than half of adults say they feel a sense of lost youth from living under their parents’ roof.

And of those feeling fed up with their living arrangements, many:

• think they’ve lost their independence.
• feel tired of being judged by their folks.
• feel sick of parents interfering in their personal lives
• admit it’s harder to maintain relationships while living at home

“This data lays bare the systemic failure of our housing ecosystem,” said Stuart Haire, chief executive of Skipton.

“It’s a failure that is locking millions of young people out of independence, home ownership, and long-term financial stability.

“When 98% of adults living with their parents can’t afford to leave, they’re not just facing a housing crisis - they’re facing a crisis of opportunity.”