Number of young workers living with parents reaches historic high
The number of young workers staying at home with their payments has risen by 25% since 1996, according to recent data from the Office for National Statistics.
The ONS have disclosed that high levels of unemployment amongst young people in the UK, combined with rapidly rising property prices has meant that more and more people are being forced to live with their parents to an older age.
Around 3.3 million people aged between 20 and 35 years old have been said to have been living with their parents last year, which represents the highest number that the ONS has ever seen.
Since 1996, the number of families sharing housing costs increased by 25%, despite the fact that the level of young people in the UK has remained broadly the same.
Young workers aged up to 25 comprise the largest percentage of those living with parents with a sizeable 49% currently still living in their family home, whilst 20% of 25-29 year olds and 8% of 33 year olds.
The results provide compelling evidence to the argument that it is the younger generation who have been hit hardest by the economic downturn back in 2008,with high unemployment levels being given as the reason as to why more young people are choosing to stay at home with their parents.
ONS figures support this argument, with youth unemployment rising to 19% from 13% in the past 6 years. Intriguingly, it is the age group between 20 and 24 years old which has seen the sharpest increase in numbers of people staying at home with their parents, with a 42% rise in the past 6 years.
And the number of unemployed young workers who are still at home with their parents is over double that of those who currently enjoy some form of work.
Property price strain
The ONS have also identified that high property prices combined with low incomes for young workers has also made it difficult for many to leave home.
Back when the ONS records begun in 1996, a young worker needed to acquire around 2.5 times their annual income in order to acquire a home, but this has sharply risen to 4.5 in 2013. The increased difficulty that young prospective homeowners now face when trying to acquire a mortgage due to tighter checks has also contributed to the steep rise in people living at home with their parents.
Matthew Pointon, housing economist at Capital Economics, said:
ìThe recession hit the young particularly hard, with a sharp rise in youth unemployment. Furthermore, there was a collapse in the availability of mortgages for buyers with small deposits, which prevented many would-be first-time buyers from flying the nest," he said."With lenders demanding a deposit of at least 25%, and with savings rates at record lows, many young buyers desperate to get on the housing ladder would have seen staying with their parents a little longer to boost their savings as their only option."
Matt Griffith, of an IPPR think tank said the ONS findings clearly indicated a failure of the government to address all deficiencies within the property market.
Mr Griffiths said: "Short-term recession-related unemployment is colliding with long-term housing failure to create intense pressures on young people and their housing choices. We are seeing a regression towards much less mobile households as a result,"
"Unfortunately, up until now, the policies we need to address this ñ much greater levels of housebuilding and reining in excessive housing demand ñ are seen as upsetting that more powerful generational political force: older voters. The silver lining is that housing costs are now so absurd we are starting to see recognition across all groups that things really do need to change."