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Parents put up rent by a quarter to encourage adult children to fly the nest

06 February 2013

Unable to afford their own home, 1.7m adults between the ages of 20 and 40 are living at home with their parents.

This is according to a report by Shelter published late last year, which highlights the plight of the so-called boomerang generation. 

If you are looking to get a foot on the property ladder, compare mortgages with Money Expert. 

A new study by myvouchercodes surveyed 1,500 parents with adult children still living with them and found that just over half charge rent, with the average amount now standing at £315 a month, up from £250.

This marks a 25% rise in a year, and while ‘increased living costs’ is the number one reason for this, parents also said they were ‘preparing their children for leaving home’.

According to the Shelter research, nearly half of all parents with adult children still living at home worry it is ‘holding their children back from living an independent adult life’.

In addition, only a small proportion said that financial contributions from their children had helped to reduce household costs.

A number of the families polled for Shelter said that having their children living at home was a financial burden, with four in ten still doing a big ‘family shop’, one in five cutting back on holiday expenditure and almost one in ten delaying moving house.

Adult children are increasingly returning to the family home after graduating from university, with the high cost of rent and large deposits blocking access to the property ladder.

However, recent figures from the Bank of England showed that UK mortgage approvals hit an 11-month high in January, and mortgages are steadily becoming more affordable.

For example, Barclays has recently introduced its ‘Springboard’ mortgage to the market, which allows homebuyers to purchase a property with just a 5% deposit.

If you are considering getting a foot on the property ladder, compare mortgages with Money Expert. 

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