Young adults ‘living at home’ to save for deposits

Britons between the ages of 18 and 34 are increasingly living rent-free with friends and family, research has indicated.

Abbey Mortgages revealed that 1.6 million people in this age group are using the tactic to save money, with a further 300,000 35 to 54-year-olds doing the same.

This represents an increase from the total figure of around 500,000 last year, as a growing number of consumers were found to be putting money aside to buy a home.

Abbey’s Nici Audhlam-Gardiner remarked: “Living rent-free is a great opportunity for potential first-time buyers to save money that can be put towards a deposit for a property of their own.”

Those who are living with friends and family are estimated to be saving around £839 million each month, with people in areas where house prices are highest shown to be most likely to do so.

Head of mortgages at Bestinvest Peter O’Donovan recently noted that mortgages requiring smaller deposits are increasingly being made available.

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