The number of young adults (aged 24 to 34) who still live with their parents has risen by 36% in the last decade (according to data from Aviva). This means 1.23 million young adults currently living with their parents, an increase of 331,000 in 10 years! The Office for National Statistics shows that over this decade we have seen a 45% increase in house prices for first time buyers, and house value averages rising from £146,000 to £211,000.
In a survey of 16 to 34-year-olds, Aviva found that one in 12 don’t ever expect to fly the nest; while a third said they don’t ever expect to own their own home; and a fifth said they can only see themselves owning their own home if they inherited it from a family member. The reasons these young adults gave for remaining at their parents’ home are as follow:
- Half admit they are happy with their current living situation, although this was only true for under a third of those in the age bracket 30-34.
- Two thirds stated that the only reason they still live at home is because they cannot afford to move out, and are doing it to save money.
- A quarter said they are comfortable being looked after by their parents
- Around a sixth say they are living at home to care for their parents
If you are struggling to get onto the property ladder but are desperate to leave the family home, you may have to make some sacrifices. Here are a few suggestions:
- You may have to move further from your family than you wish. Remember this is just your 1st home and more options might be open to you when you make your next move.
- Like many others you may be struggling to save for a deposit, consider using the Governments Help to Buy scheme. This helps buyers with a 5% deposit, and provides a 20% interest free loan for 5 years.
- For some, house prices are rising so fast that they consider building their own home. This idea seems overwhelming, but if you can afford to buy a plot of land to build on, you can build a prefabricated home, there are some nice designs available for as little as £50,000.
- If your finding it difficult to be eligible for a mortgage, try sharing the financial responsibility with a friend, family member or your partner, some mortgage products accommodate partnerships. Buying with a partner is becoming more and more common. According to Mark Harris, chief executive of mortgage broker SPF Private Clients: ‘This can work out well – two lots of money towards the deposit and two incomes toward the mortgage makes it more affordable. However, you should take care to ensure you get a legal document drawn up detailing who contributed what and how to proceed if circumstances change, for example if one party wants to sell and move.’
For more information visit: www.aviva.co.uk/home/home-advice/unique-homes/article/multigenerational-living-adult-children/