Most young adults in the UK have lived in their family home, not for comfort, but because they simply can’t afford to rent and save for a house deposit at the same time.
A survey of 3,000 UK adults conducted by lifetime ISA provider OneFamily has found that three in five adults aged 18 to 40, equal to more than 12 million people, have lived with parents or relatives specifically to save for their first home.
Nearly one in five – equivalent to 3.6 million adults – are currently doing so, as hopeful first-time buyers continue to feel the squeeze of rents and the cost of living.
Among those who have returned home to save for a property are charity worker Jessica Keogh, 25, and her partner Zak, 27 (main picture) who recently purchased their dream home together – a three-bedroom house in Essex.
SAVING INCENTIVE
The couple used their OneFamily Lifetime ISAs (LISAs) to help them save, which offer a free 25% government bonus on up to £4,000 saved annually. That means savers can earn up to an extra £1,000 each year.
After finishing university, Jessica moved back in with her mum for over three years, while Zak lived with friends and then later returned home with his family to put money aside for a deposit.
“We both feel very lucky to have such warm, welcoming parents.”
Jessica says: “We both feel very lucky to have such warm, welcoming parents who would happily have us stay for as long as we needed. We’re both very aware not everyone is in that position, and we don’t take it for granted.
“If I’d stayed renting with friends, I would have been spending around £600 a month. I was then able to put the money I saved by living at home towards my deposit. Without the opportunity to move home, we wouldn’t have been able to buy the house we have or do it in the timeline we managed.
“It’s harder for Gen Z to reach big financial milestones, like owning a home, starting a family, or building a career, especially with the cost-of-living crisis. Most people, regardless of age, want to own a home.
“But I’d say a lot of young people today also value life experiences like travel more than perhaps older generations did. Sometimes we’re seen as lazy or lucky to live at home longer, but for many of us, it’s just not affordable to move out yet.”
SEVEN TIMES INCOME
As of July 2025, the average UK house price was approximately £270,000, which is over seven times more than the average yearly incomes of around £37,600, according to ONS data. Renting can also often eat up a large chunk of savers’ monthly income, leaving little left over to put towards a deposit.
Jim Islam, CEO of OneFamily, says: “What we’re seeing here is that independent young adults are having to return to their family homes, just to be able to save up enough for a deposit.
“For Jessica and Zak, it made smart financial sense to move back in with their families for a while. But for many, this can be a tough call to make and a difficult readjustment.
“Buying a home feels out of reach for a lot of young people right now, but not all hope is lost. There are tools out there and careful planning, saving, and the right financial education and support can help hopeful homebuyers get on the ladder.”
