Nearly half of Brits say they would like to live with their parents to get on the property ladder
FOUR in ten renters would consider moving back to live with their parents so they can save enough to get on the property ladder.
A survey of 2,000 renters with the ambition to buy a home found that 52% of those considering it consider it a step backwards, while 91% see it as a short-term sacrifice for long-term gain.
While 22% estimate that the move will allow them to save enough for a home deposit within a year.
However, for 22% this simply wouldn’t be an option – and 69% wouldn’t want to burden their parents.
It follows rental data from Hamptons, part of the Skipton Group which commissioned the research, which found that the average rent paid by someone leaving the family home exceeded £1,000 per calendar month for the first time in 2023.
This means that the average potential renter who hasn’t left the nest would have the opportunity to save up to £12,290 if they could live rent-free with their parents for a year.
Currently, rising rents and the cost of living means tenants surveyed can only save £187 a month for their first home deposits.
But they think that if they move to the ‘Hotel of Mom and Dad’, they can save as much as €808 every month.
It also found that 20% think it will take them more than five years to save for their first home while renting, while 63% say their family is unable to contribute to their savings.
Jennifer Lloyd, head of mortgage products and proposition at Skipton Building Society, which recently launched its product Mortgage track record to help tenants get onto the property ladder without the need for a deposit, said: “People being stuck in renting a home is one of the biggest housing challenges we face across the country, and that has an enormous impact on the structure of our society.
“With rising rents and cost of living pressures further impacting people’s ability to save for a home deposit, it is becoming almost impossible for people to get onto the property ladder.
“So it’s no wonder we’re seeing an increase in the number of renters considering a move home.”
“For those who are fortunate enough and willing to take this step, it can be an essential first step in helping them grow their savings.
“However, the research shows that for many tenants we know that this is not an option for them.
“That’s why it’s important that renters have more options, such as the Track Record Mortgage, which can help them buy a home when building a deposit isn’t an option.
“We want to enable more tenants to realize their home ownership ambitions faster, without the help of the ‘mom and pop hotel’ or the ‘mom and pop bank’.”
Of those who feel moving back in with mum and dad is not an option, one in three say there is no room for them with their parents, while 27% would end up living too far away from work.
And 37% admitted they wouldn’t be able to give up their independence.
But 23% simply wouldn’t want to live by someone else’s rules, the paper said OnePoll.com figures.
The research also found that 22% who were considering staying with mum and dad again would take the opportunity to get financial advice from them.
While 20% think this would reduce their commuting costs, and 36% think they could pay off their debts faster.
Furthermore, six in ten people would look forward to spending more quality time with their parents or guardians if they returned to live with them.
Nearly half (45%) would like to eat home-cooked meals regularly, 18% think they would benefit from more outdoor space and 17% would even love being reunited with childhood pets.
Although 13% think they will not have to pay anything towards their parents’ rent, the rest expect to have to hand over an average of €252 per month.
Jennifer Lloyd added: “We know there is no one quick fix to tackling this huge societal challenge where tenants are locked into rental cycles, with rents rising faster than mortgage payments and the rising cost of living. But doing nothing won’t do that. solve this UK housing problem.
“The Track Record product will not help everyone and is only part of the solution for this group of people, but as a lender we are taking a stand to offer innovation in this area to convert generational renting into generational purchasing. .”
Watch our My First Home series to see how people have found their way onto the property ladder.
A mortgage lender has revealed five strange reasons why you might be refused a mortgage.
What is LISA?
LISAs are designed to help people save for retirement or their first home.
The government adds a 25 percent bonus to the amount you put in, so if you add the maximum £4,000 you get £1,000 free.
You can also use the money if you are terminally ill and have less than twelve months to live.
You can open one of the accounts with any bank, building society or investment manager, but you must be aged 18 or over and under 40.
You can pay into the account until you are 60.
If you’re planning to use your LISA to buy your first home, there are some rules you’ll need to follow.
The price of your first home cannot exceed €450,000 and you cannot use the money if you want to rent it out or use it as a holiday home.
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