A growing number of young adults in the United Kingdom are choosing to live with their parents, driven by rising living costs and financial challenges. According to a recent report by the Institute for Fiscal Studies (IFS), the proportion of 25 to 34-year-olds living with their parents has surged by more than a third over the past two decades. In 2006, approximately 13% of individuals in this age group resided with their parents. By last year, that number had risen to 18%.
Researchers have identified several factors fueling this trend, including escalating rents and house prices. The financial burden of living independently in high-cost areas like London has become increasingly daunting, leaving many young adults with limited options. As a result, some young people have opted to move back into their parental homes to save money, especially those in their late 20s and men.
The IFS report highlights that 23% of men aged 25 to 34 are living at home, compared to 15% of women in the same age bracket. This trend peaked during the pandemic when over a fifth of young adults in this age group resided with their parents. For some, living at home offers an opportunity to accumulate savings more rapidly than renting would allow.
"For some, living with parents provides an opportunity to build up savings more quickly than if they were renting – which is an especially valuable advantage in high-cost places like London," said Bee Boileau, a researcher at IFS.
The financial advantages of living at home are evident, as around 14% of young adults managed to accumulate more than £10,000 in savings over two years, compared with only 10% of those renting privately.
Zach Murphy, a 25-year-old from London, is one of many young adults who have returned to their family home. After previously sharing a flat with two friends, Murphy found the prospect of renting independently in London impractical.
"It's getting harder to save. It feels like there is no hope getting on the housing ladder in London," he expressed. For Murphy, purchasing a property in London is "out of the question unless you want to live in a shoe box."
Meanwhile, Danny McGuire, a 33-year-old from Warrington, Cheshire, shares a similar story. He lives with his parents while contributing towards rent and groceries. Despite his hopes of buying his own house this year, McGuire echoes Murphy's sentiment that entering the housing market in London seems unattainable.
The IFS report also found that the trend of adult children living at home is more prevalent among UK-born young people from Bangladeshi and Indian backgrounds. Additionally, the report noted societal shifts within the 25 to 34 age group over recent decades. They are now less likely to be married or have children compared to previous generations.