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In 2023, there were 3.6 million people aged 20-34 still living at home with their parents — that’s 28% of people of this age, and a third of young men.
The good news for them is that Hargreaves Lansdown’s latest research has shown that just over half of parents don’t mind — 51% say their offspring are welcome to stay for as long as they like.
However, it comes at a cost for everyone concerned.
It means younger people are likely to get onto the property ladder later in life. If prices are still sky-high and mortgages are stretched to 30 years or longer, it could mean people approaching older age still carrying a mortgage, so they can’t retire when they want.
They may also have to put off other milestones in their life, like getting married or having children, because these things are tricky to manage from your teenage bedroom.
Read more: Who wears the financial trousers in your relationship?
For their parents, it means they’re covering the cost of keeping a roof over their head for longer. It means no empty nest period where they can enjoy more spending opportunities, or plough more money into their pension in order to ensure they have what they need to live off in retirement. If they had planned to downsize to pay off their mortgage, or supplement their income, having their children at home could mean they have to put these plans on hold.
It's no wonder some parents will consider how to persuade their offspring to move out. When asked what they’d do, the most popular answer was to give them money towards a property deposit. One in five parents with children at home said they’d choose this option. It’s incredibly effective, because it enables them to get straight onto the property ladder, without years of trying to balance rent and saving for a property. However, it’s not always affordable.
If money is a bit tighter, parents can consider the second most common option, charging them rent. Some 17% of parents with kids living at home said they would charge rent, and make their offspring take charge of the basics of looking after themselves — like cooking and washing their own clothes. This has the dual benefit of easing their parents’ financial position, and enabling them to prepare for independent life.
Sometimes parents will start with a nominal rent, and then gradually increase it, to give their children experience of managing on a budget while paying rent. If parents don’t need the money to make ends meet, it can be a good idea to keep at least some of this money aside. It can then be saved and given to children as either a rental deposit or a property deposit, to help them take the next step. Offering a rental deposit can be more affordable, because often they will need one months’ rent, plus the first month up front, and it’s an approach taken by 8% of people.