One in three adults who live with parents expect never to own a property
As property prices continue to rise, an analysis carried out by Aviva insurance, has revealed that the number of young people aged between 25-34 living with their parents has grown by 37% in the last decade, increasing from 903,000 to 1.23 million.
If this growth continues to rise the number could increase by a further 452,000 over the next 10 years.
The trend in multi-generational living is in line with the rising house prices for first time buyers. Data from the Office of National Statistics supports this suggesting the price of an average UK home increased from £146,000 to £211,000 over the same period.
Aviva carried out an additional study on the attitudes of 500 people in the UK, aged between 16-34 who are currently living with their parents. Their report found that 28 was the average age respondents thought they would reach before they would move out, with 8% believing they would never leave their parents’ home. The percentage of young adults who expected to never leave their current residence rose to 13% among 25-29 year olds and to 28% among 30-34 year olds.
One third of those interviewed said they would probably never have an opportunity to own their own home, with a fifth expecting the only way they could own a property was through inheritance.
An average age of 31 was predicted, by those who felt they would own their own home, as the age they expected to get onto the property ladder.
There are several reasons why young adults are residing with their parents for longer periods, they enjoy being looked after or are too scared to move out on their own. However, financial reasons remains at the forefront, with 62% simply not being able to afford to move out and 48% choosing to stay with their family to try and save money.
The study also found that there was a higher proportion of males living with their parents than females, with males accounting for 68% of the overall figures.
Lindsey Rix, MD, Personal Lines Aviva UK, General Insurance said: “The challenges of getting on the property ladder are well publicised, but it’s startling to see that one in three adults who live with parents expect never to own a property and further fifth believe the only way they will own a home is by inheriting one”.
With house prices expected to continue to rise, the percentage of adult children living with their parents is likely to grow further.
Full article available on Aviva: http://www.aviva.co.uk/media-centre/story/17767/number-of-children-aged-25-34-living-with-parents-/