Quarter Of Adults Move Back Home With Parents To Save House Deposit

And it's costing our folks a lot of money.

With record student debt and sky-high housing prices, a quarter of the nation’s 18-34 year olds now move back in with the parents in order to save a deposit for a flat or house. And that’s even if we’re renting.

A staggering 4.5 million adult children currently live with their parents, and as anyone who has done it will know, “boomeranging” back to the ’rents can put emotional and financial strain on all concerned.

Moving back home costs your folks £1,042 per year, according to the new research from MoneySuperMarket. Just 38% of adult children pay rent to their parents and those that do pay contribute £6 per night on average.

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Most adult children move home to save for their own place (36%), the survey of parents and adult children revealed, but this is not the only reason.

A quarter (25%) said the adult child simply can’t afford rent, while splitting from a partner (21%) or losing a job (7%) forces many others home as they struggle to stay afloat financially.

Commenting on the findings Dr Michael Muthukrishna, assistant professor of Economic Psychology at London School of Economics, said difficulties securing paid jobs was another factor preventing millennials moving out for good.

“It used to be that a school qualification was enough to make a good living. Then it took a university degree or a short apprenticeship. Now it requires post-graduate degrees, internships and volunteer work - which can be unpaid - as well as on-the-job training,” he said.

“This has meant that the age of people having their first child, owning a home and becoming financially independent has been steadily rising.”

On average, we’re moving home to our parents’ for just under a year (11.6 months) - six months longer than parents would like, and three months longer than was initially agreed.

Unsurprisingly, having an extra person in the house increases bills for parents. Spending more money on laundry, food shopping and toiletries increases household costs by almost £1,000 per year, while increased gas, electricity, water bills and home insurance premiums add another £180 extra to the pot.

MoneySuperMarket’s Caoimhe Keogan recommends families set out ground rules before adult children move home, such as agreeing what contributions can realistically be made, to make the process as pain-free as possible.

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