A record number of young adults are still living with their parents as the cost of buying a home continues to delay homeownership according to new analysis from conveyancing solicitors Bird & Co.
Drawing on data from the Office for National Statistics and HM Land Registry, the research found that almost 3.8 million people aged between 20 and 34 now live in the family home – the highest figure since comparable records began in 1996.
The number has risen by more than 40% over the past three decades, despite the population of people aged 20 to 34 increasing by less than 4% over the same period.
The analysis also found a significant gender divide. Around 35% of men aged between 20 and 34 continue to live with their parents, compared with 22% of women, leaving young men more than 50% more likely to remain in the parental home.
FINANCIAL CHALLENGES
While the gap has remained broadly unchanged over the past 30 years, the proportion of both men and women living at home has increased steadily, reflecting the growing financial challenges facing younger households.
Bird & Co believes the cost of saving for a deposit remains one of the biggest barriers to leaving home. Across England and Wales, the average 10% house deposit is now equivalent to around 28 months’ rent, while in some of London’s most expensive boroughs prospective buyers face saving the equivalent of almost three years’ rent before purchasing their first property.
GENERATION GAP
Daniel Chard, Partner at Bird & Co, says: “There’s a distinct and persistent gap between young men and young women when it comes to leaving the family home. This gap has held steady for three decades, so it isn’t a new phenomenon, it’s a long-standing feature of how young adults move into independent living.
“The consistent thread, whichever group you look at, is that a first home is harder to reach than it was a generation ago. When the deposit alone can run to years of rent, it is no surprise that more young adults are staying with their parents for longer.
“The right decision will always depend on individual circumstances. Anyone considering a first purchase should weigh the full cost of buying a home, including the deposit, mortgage commitments and legal fees, and seek professional advice before proceeding.”
