Young adults living with parents reaches highest level since records began, study finds
Bird & Co found the number of young adults living at home has risen by more than 40% over the past three decades.
Almost 3.8 million adults aged 20 to 34 are living with their parents, the highest number since comparable records began in 1996, according to analysis by conveyancing firm Bird & Co.
The research, which analysed data from the Office for National Statistics (ONS) and HM Land Registry, found the number of young adults living at home has risen by more than 40% over the past three decades, despite the size of the 20 to 34 age group increasing by less than 4% over the same period.
Bird & Co said around three in 10 people aged 20 to 34 now live with their parents, compared with around one in five in 1996.
Had young adults continued leaving home at the same rate seen in the 1990s, around one million fewer would still be living in the family home today.
The research also identified a gender divide, with 35% of men aged 20 to 34 living with their parents, compared with 22% of women.
Men have consistently been more likely to remain in the family home over the past three decades, although the proportion has increased for both sexes.
To explore the reasons behind the trend, Bird & Co compared the cost of a typical 10% deposit with local rental costs across 316 local authorities in England and Wales.
It found that, across all areas, a deposit is typically equivalent to around 28 months’ rent. In some of the least affordable areas, particularly in London, buyers would need to save the equivalent of almost three years’ rent for a deposit.
Daniel Chard, partner at Bird & Co, said: “For the majority of first-time buyers, the principal obstacle is not the monthly mortgage payment but raising the deposit.
“When that deposit is equivalent to two years of rent across much of the country, and considerably more in the least affordable areas, it is unsurprising that so many young adults are remaining at home.
“These are the highest numbers on record, and the cost of buying offers a plausible explanation.”
Chard added: “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.”
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