Almost 3.8 million adults aged between 20 and 34 are estimated to still be living with their parents – the highest figure since comparable records began in 1996 – according to new analysis by conveyancing firm Bird & Co.
Using data from the Office for National Statistics and HM Land Registry, the research found that nearly three in 10 young adults now remain in the family home, compared with around one in five three decades ago.
The number of 20 to 34-year-olds living with their parents has increased by more than 40% since 1996, despite the overall size of the age group growing by less than 4% over the same period. Bird & Co estimates that, had young adults continued leaving home at the same rate as in the 1990s, around one million fewer would still be living with their parents today.
The research also found a notable gender gap. Around 35% of men aged 20 to 34 live with their parents, compared with 22% of women, meaning young men are more than 50% more likely to remain in the family home.
Bird & Co believes affordability continues to be a key factor. Comparing deposit requirements with rental costs across 316 local authorities in England and Wales, the firm found that a typical 10% house deposit is now equivalent to around 28 months’ rent. In some major cities, buyers would need to save the equivalent of between 18 and 24 months’ rent, while in parts of London the figure approaches three years’ rent.
The firm said the findings highlight the financial challenge facing many first-time buyers, particularly those already paying high rental costs while trying to save for a deposit.
Daniel Chard, partner at Bird & Co, said: “For the majority of first-time buyers, the principal obstacle is not the monthly mortgage payment but raising the deposit. When that deposit is equivalent to two years of rent across much of the country, and considerably more in the least affordable areas, it is unsurprising that so many young adults are remaining at home. These are the highest numbers on record, and the cost of buying offers a plausible explanation.
“The right decision will always depend on individual circumstances. Anyone considering a first purchase should weigh the full cost of buying a home, including the deposit, mortgage commitments and legal fees, and seek professional advice before proceeding.”
Comments (2)
It’s crazy how much things have changed. Back in the day, everyone was scrambling to get their own place. Now, with housing prices and rent being what they are, it’s almost impossible for young adults to save up. Makes me wonder if the next generation will even know what a “Snow Rider” is when they’re still living at home playing games. [link removed]
Yes, I know everything was so much easier for us! But I left home when we had our first child at 22. We rented the top of a house which needed constant damp treatment. No landlord to threaten with a fine! We furnished secondhand and decorated it; even painted the exterior and windows, and installed a gas fire (our only heating). Just my income, which wasn’t significant at that age, no car, walked everywhere. We then had another child, and I decided I needed a better paying career. I took a big risk, walked away from my secure local government job, and went into sales. It’s amazing how motivated you become when you know everything is on the line, and no one will be there to bail you out. 4 years later I bought my first house in 1986, but had to leave London to be able to afford it, and 3 years later interest rates hit 15%.
House prices have increased a lot, but so have the ‘opportunities’ to spend money on things which never existed in the 80s, and I do believe many young people prioritise non-essential spending over saving. Anyone who has 50% of their disposable income available after housing should be able to save! Then there is the ever increasingly generous benefits safety net, and the temptation to ‘catch’ ADHD and myriad other mental health issues which, clearly, didn’t exist in the 80s and 90s… especially when families were having their homes repossessed, or losing their jobs during financial crises. A friend of mine simply put his keys in the letterbox and walked away from his house!
Most parents will always do whatever they can to help their children, at whatever age. Mine are now 46 and 48 and I’m still helping them out. It will be their money anyway. But the government must end the mental health benefits racket.
A graduate who can’t get the job they believe they are entitled to, and we all know about the impact of AI, has a choice. Sit at home for the rest of their life on benefits, never have their own family, wait for their parents to pop off to inherit something (unless this government finally take it all!), and all the while their mental and physical health really will deteriorate. Or they can retrain for a trade we need, and which AI can’t replace.