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. “