FOUR in 10 renters would consider moving back in with their parents so they can save enough to get on the property ladder.
A poll of 2,000 renters with an ambition to buy a home found while 52% of those considering it feel it’s a move backwards, 91% consider it a short-term sacrifice for a long-term gain.
1
While 22% estimate that making the move could allow them to save enough for a house deposit within a year.
However, for 22%, this simply wouldn’t be an option – and 69% wouldn’t want to be a burden on their parents.
It follows rental data from Hamptons, part of the Skipton Group which commissioned the research, revealing the average rent paid by someone leaving the parental home passed £1,000 per calendar month for the first time in 2023.
This 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.
Currently, rising rents and the cost of living means the tenants polled are only able to save £187 a month towards their first house deposits.
But they reckon moving into the ‘Hotel of Mum and Dad’ could see them put as much as £808 away monthly.
it also emerged 20% feel it will take them more than five years to save for their first home while renting, with 63% saying their family are unable to contribute to their savings.
Jennifer Lloyd, head of mortgage products and proposition at Skipton Building Society, which recently launched its Track Record mortgage to help renters get on the property ladder without the need of a deposit, 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.
Most read in Money
“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 to 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.”
Martin Lewis reveals clever £1 savings trick to help you get on the housing ladder – with no risk
“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 an option for them.
“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 and dad’ too.”
Of those who feel moving back in with mum and dad isn’t an option, one in three said there is no space for them at their parents while 27% would end up living too far away from work.
And 37% admitted they wouldn’t be able to give up their independence.
But 23% simply wouldn’t want to live by someone else’s rules, according to the OnePoll.com figures.
The study also found 22% who would consider shacking back up with mum and dad would use the opportunity to pick up financial advice from them.
While 20% believe it would reduce their commuting costs, and 36% think they’d be able to pay off debt more quickly.
To add to this, six in 10 would look forward to spending more quality time with their parents or guardians, if they moved back in.
Nearly half (45%) would enjoy regular home-cooked meals, 18% think they would benefit from more outdoor space and 17% would even love being reunited with childhood pets.
However, while 13% don’t think they would have to contribute anything to their parents for rent, the rest would expect to hand over an average of £252 a month.
Jennifer Lloyd added: “We know there isn’t one quick solution to addressing this huge societal challenge of tenants being trapped in renting cycles, with rents escalating faster than mortgage payments and the increasing costs of living, but doing nothing isn’t going to solve this UK housing issue.
“The Track Record product will not be able to help everyone and is only part of the solution for this group of people, but as a lender, we’re taking a stand to offer innovation in this space to help turn generation rent into generation buy.”
Check out our My First Home series to see how people have managed to get their way on the property ladder.
A mortgage lender has revealed five odd reasons you may be refused a mortgage.
READ MORE SUN STORIES
What is LISA?
LISAs are designed to help people save for either retirement or their first home.
The Government adds a 25 per cent bonus to whatever amount you put in, so if you added the maximum of £4,000 you would get £1,000 free.
You can also use the money from one if you are terminally ill and have less than 12 months to live.
You can open one of the accounts with any bank, building society or investment manager, but have to be 18 or over and younger than 40.
You can pay into the account until you are 60.
If you plan on using your LISA to buy your first home there are some rules to follow.
The price of your first home can’t be more than £450,000 and you won’t be able to use the money if you want to rent it out or use it as a holiday home.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
You can also join our new Sun Money Facebook group to share stories and tips and engage with the consumer team and other group members.
