Almost one in four (23%) 21 to 34-year-olds who rent privately have considered moving back into their family home, Compare the Market has revealed.
The largest proportion said this was due to general living costs being too high (55%), while 40% wanted to save money for buying a property.
Nearly three in 10 (29%) were struggling to pay their rent, with almost three quarters (73%) reporting that they found it challenging to afford their rent in the last year.
More than one in five (22%) considered moving back in with their family to save money for another reason, such as travelling.
The research also found that more than a fifth (21%) of 21 to 34-year-olds lived in their family home, while a third (33%) lived in private rental accommodation.
More than a quarter (27%) lived in a home that they owned with a mortgage, and 8% in a property that they owned outright.
Among those living in their family home, 35% were choosing to do so because of the high cost of living, which meant that they cannot afford to live elsewhere.
A similar proportion (35%) were saving up to buy their own home, while 24% reported that they simply prefer living with their family.
Most 21 to 34-year-olds currently living in their family home said that they plan to move out within the next year (64%).
Among them, 40% intended to buy their own property, while 24% planned to move into rented accommodation.
Helen Phipps, director at Compare the Market, said: “A significant number of young renters are considering moving back into their family home due to high living costs.
“We would encourage people who are struggling to look for ways to make savings where possible and ensure that they do not pay more than they need to for everyday expenses.
“People could start by making a note of what’s coming in and going out, avoiding allowing expenses like insurance and utilities to auto renew, and ensuring that they do not slip onto variable or ‘standard’ rates for credit cards.
“Comparing costs online using a price comparison website may also be helpful.”
She added: “For homeowners who may have an additional occupant moving back in, it is important that you let your home insurance provider know.
“Your insurer will need to be aware of how many people live in your home, as this can impact how much you pay.
“If your home insurance premium increases significantly, you could make savings by switching your provider.
“Homeowners could save up to £211 on their home insurance through Compare the Market.”
