More people in late 20s still living with parents

An impression – or possibly a terror – that 20-somethings are still hanging about in the household home is based on truth, an influential ponder-tank has concluded.

The proportion of 25 to 34-year-olds still living with their parents has increased by more than a third in nearly two decades, according to the Institute for financial Studies (IFS).

The living at home pattern has been driven by men, and those in their late 20s, researchers found.

High renting costs and rising house prices were the most significant reasons for the transformation.

In 2006, some 13% of people in the UK aged between 25 and 34 were living with their parents.

By last year, that had increased to 18%, according to the IFS – an independent economic ponder-tank.

That equates to about 450,000 more youthful adults still living in the household home – with the boost concentrated on those in their late 20s, researchers found.

Of 25 to 34-year-olds, men were more likely than women to be living at home, at 23% compared with 15%.

The IFS said that this age throng had changed over recent decades, so had become less likely to be married and have children. They were also more ethnically diverse, and UK-born youthful people from Bangladeshi and Indian backgrounds were more likely to live with their parents.

The peak of grown-up children living at home was during the pandemic, when more than a fifth of 25 to 34-year-olds did so.

Now, in more normal times, parents may aspiration their grown-up children would fly the nest, but many of the 20-somethings would aspiration they could afford to do so.

The IFS said finances were a significant sticking point, with rising rents and house prices fuelling the pattern.

One 25-year-ancient who moved back into his parents’ home was Zach Murphy, from London, who had previously shared a flat with two friends. He told the BBC about his concerns, as the BBC’s recent housing tracker showed the challenges facing the government’s housebuilding target.

Studying for a masters degree in environmental science, Zach was inspired by the aspiration of a better job, but renting on his own was “out of the question, unless you desire to live in a shoe box”, and buying still feels out of reach.

“It’s getting harder to save. It feels like there is no aspiration getting on the housing ladder in London,” he said.

Danny McGuire, 33, lives with his parents in Warrington, Cheshire.

He previously lived away, including some period living abroad, but moved back into the household home during the pandemic.

“It’s quite a normal circumstance really,” he told 5 Live Breakfast.

Danny, who works for a local council, said he wanted to live independently but had found himself with an “ever-dwindling” amount of leftover money each month to save for a house. Prices were rising and saving enough for a investment on his own was challenging, he said.

“Eventually you’ve got to make a real challenging selection of, actually, do I save for longer or do I bite the bullet, shift back home and try and save more money consistently?” he said.

Some of his friends had been given money by their parents towards a investment but Danny said his household was unable to assist him financially – instead offering a place to remain so he could save up.

He pays his parents for rent and groceries but is able to save “significant chunks of money each month”, and hopes to buy his own house this year.

The IFS concluded that some youthful people could make reserves by living at home. About 14% had accumulated more than £10,000 in a two-year period, compared with an estimated 10% of youthful adults in private rented accommodation.

However, this was not factual across the board owing to the potential of higher commuting costs, or because some had moved owing to monetary difficulties.

“For some, living with parents provides an chance to construct up reserves more quickly than if they were renting – which is an especially valuable advantage in high-expense places like London,” said Bee Boileau, research economist at IFS and an author of the update.

“However, others are likely to be living at a parental home due to a impoverished shock of some benevolent – such as the complete of a connection or a redundancy – or simply because they cannot afford to live independently.”

Housing is one of the biggest issues for people contacting us through Your Voice, Your BBC information.