One in eight private renters aged between 18 and 35 years old have already moved home to save money during the cost of living crisis, it’s claimed. A further 23 per cent plan to do the same in the next 12 months.
This is particularly the case for those aged 18 to 25-year-olds, with close to a third of this age group planning to move back to their family home according to the research, by Fidelity International.
Renters in London are also the most likely to be planning a move back to their parents compared to other regions in the UK and they search for friends or properties with more roommates to help spread expenses.
Some 11 per cent have moved in with friends due to rising costs, with 27 per cent planning to do so in the next year. In addition, 14 per cent have already moved to properties with more people to help manage their bills, and 26 per cent say they plan on making the same move in the future.
Renters planning to change their living arrangements expect to save £267 a month from their move. While almost a third of renters plan to use these savings for immediate needs such as everyday expenses or to pay off debts, many are looking to put the money towards their future plans. Three in 10 hope to build up their long-term savings, while a quarter 25 per cent are saving towards a house deposit.
Emma-Lou Montgomery, associate director for personal investing at Fidelity International, comments: “Times are tough with costs rising across the board and young renters are having to consider the different options on the table. While moving back home isn’t feasible or desirable for everyone, considering how you might be able to minimise the costs that you have power over Is worthwhile.
“For parents and other family members who might have welcomed a loved one back into their home this year, ensure you are considering your own finances too. With your household outgoings likely having risen, it’s important to reassess your own goals. Making sure you revisit your plans regularly will allow you to stay on track despite what life throws at you and your family.
“It’s encouraging that while renters are making the decision to change their living arrangements due to the cost of living crisis many are choosing to use the money they save for longer term ambitions. Saving money is getting more difficult so it’s reassuring that renters are being savvy and are thinking about putting money away for the future. Now is the time to make your money work as hard as possible, so consider all your options when trying to save. “
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I can see this happening more and more, we really do have a totally broken housing system.
Remember the days when we got engaged, continued living with our parents until we had saved enough to set up a home and only then got married or cohabited.
I do think we used to wait until we could afford to leave home whilst it has now become the norm to want our own space as soon as we hit 18, whether we can afford it or not.
Young people staying at home a bit longer will perhaps ease the pressure on the PRS a bit, but its not really a solution is it?
I think if you are a student or you have a job then you can probably afford at least a room in a shared house, as long as you don't overspend on everything else. Problem is these days there are lots of expensive things that many people want to have, cars, holidays, designer clothes, nights out, take aways, mobile phones, subscription TV etc etc. Life is about choices.
I won't even consider a tenant under 25, and even then they have to pass affordability checks, what's the point in having a tenant that cannot afford the rent and bills
Ah, yes in truth surely moving into family homes I have seen this. Why not this is the exempt from all Schemes including the tax man. In the guise of the £7’500.00 Rent a Room Scheme where it is used as a cover for 3/4 persons, good one that isn’t it, did they forget to mention.
Who made those rules or was it the same people that made the HMO rules and excluded themselves, would they be the Rogue’s.
My kids are still at home and saving like mad, if they moved out then their savings would be badly hit, but we live in a big house, we all have room to move and have privacy…. Some are not as lucky. If you move out you’re doomed to rent forever.
Even more so if you start your family whilst renting!
I agree Tricia, but don't you think it is irresponsible to bring a child into the world if you are not able to properly care and provide for it, I object very strongly to subsidizing other peoples children
I was born in my Granny's council house whilst my mum and dad were on the Council waiting list.
Once we got a council house we always had a newly married couple in the spare room until my siblings arrived.
I can't remember any time when my granny's spare room wasn't occupied by a young couple waiting on the council list, although in the 50's Harold Macmillan was building loads of council houses and the waiting list didn't seem too long. Perhaps current politicians could try that again?
In poorer countries it is normal for 3 or 4 generations living under the same roof.
I'd be quite happy for my grandchildren to stay under my roof.
It's my own grown up children that would risk eviction!
I basically am a 3 generation household, we live in a large house in the countryside, we've split the house into 2, a wing each, my son, his partner and their 2 children live in one half, myself and my wife live in the other half, my eldest daughter, her partner and their young son are living in a caravan in the garden while we are converting what was a 2 story garage / workshop in the garden, my youngest daughter lives in Cornwall with her partner renovating a barn on her partner's parents land, so we are going back to multi generation living, it works so why not ?
Andrew
I can just see Shelter's headlines now:
Millionaire landlord coins it in from multiple rental properties whilst daughters and grandson live in caravans before planning to move into a garage and a barn!
PS. Time to buy a manger?
That’s Brilliant Andrew supporting family members to the last, it what Parents should be doing, instead of abandoning them.
Are but we also get see our grandchildren on a daily basis, win win
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