Four in 10 renters would consider moving back in with their parents so they can save enough to get on the property ladder, new research by Skipton has revealed.
The poll of 2,000 renters with an ambition to buy a home found while 52% of those considering it felt it was a move backwards, 91% said it would be a short-term sacrifice for a long-term gain.
While 22% estimated if they were to make the move, they could have enough saved within a year for a house deposit.
ONS data shows that within England, London had the highest annual percentage change in private rental prices in the 12 months to January 2024, at 6.9%, while the North East saw the lowest, at 4.7%.
Despite the increased prices The Royal Institution of Chartered Surveyors (RICS) reported an increase in tenant demand, in their January 2024 UK Residential Market Survey as some renters may have no other option than to pay the prices.
Skipton’s research follows rental data from Hamptons, part of the Skipton Group which revealed the average rent paid by someone leaving the parental home passed £1,000 per calendar month for the first time in 2023.
Which means the average would-be tenant who didn’t fly the nest would have the opportunity to save up to £12,290 if they could live rent-free with parents for a year.
With rising rents and the cost of living, the tenants polled are currently only able to save £187 a month towards their first house deposits – but if they were to move into the ‘Hotel of Mum & Dad’ they could put as much as £808 away monthly.
Jennifer Lloyd, head of mortgage products and proposition at Skipton Building Society, said: “People trapped renting is one of the biggest housing challenges we face across the country, which is having a massive impact on the fabric of our society.
“With escalating rents and the cost-of-living squeeze further impacting people’s ability to save for a house deposit – it’s making it almost impossible for people get onto the property ladder so it’s no wonder we are seeing a rise in the number of tenants considering a move back home.
“For those fortunate and willing to make this move, then it might be a vital first step in helping them to boost their savings. However, as the research reveals, we know for many tenants, this isn’t option for them.
“And this is why it is important renters have more options available like the Track Record mortgage for them to buy a home when building a deposit isn’t an option.
“We want to empower more renters to achieve their home ownership aspirations sooner, without the help from the ‘hotel of mum and dad’ or ‘bank of mum & dad’ too.”
