Boomerang generation: One in five expect adult children to move home
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Boomerang generation: nearly one in five parents expect adult children to return to their parental home due to the rising cost of living
- 17% of adults plan to move one of their adult children
- A third say they will have to do this if the cost-of-living crisis worsens
- 43% of parents have friends whose adult children have moved back in with them
More and more young Britons are expected to return to their parental homes due to the rising cost of living.
Nearly one in five parents plan to have at least one of their adult children move back in with them, according to research from credit card company Capital One UK.
Rampant inflation and rising rents are putting enormous strain on the finances of young people – many of whom have no savings to fall back on.
Rents, in particular, have risen at an alarming rate. Last year alone, average rents in the UK rose 12.1 percent, according to property data firm Hometrack.
Hometrack’s latest report shows that single-income rents are at their highest level in more than a decade.
Make yourself at home: The number of ‘boomerang children’ is expected to increase sharply thanks to the rising cost of living
The company also found that while tenant demand is 46 percent above average, overall rental housing supply is 38 percent below normal.
Realtor Zoopla says there are no signs of a slowdown in rents due to a chronic mismatch between supply and demand. The company predicts that rents will rise by 4 to 5 percent in 2023.
The Capital One study, which surveyed 2,000 mothers and fathers across the country, found that as many as one in three parents face the prospect of having their older children move back in with them if their situation worsens.
It also turned out that almost half of the parents already have friends whose adult children are now living in the parental home again.
Will parents be able to handle it?
Three-quarters of British parents say they would welcome their children with open arms if they were struggling financially, the survey found.
While some parents may be happy to rehome their children, the cost of a return can hit families hard.
According to Capital One’s research, the average parent expects their energy and food bills to increase by £272 per month.
A separate study by investment firm Arbdn found that nearly two-thirds of adults over 55 in the UK have seen a fall in disposable income.
More than half have not been able to save at all or as much as before and more than a third have withdrawn money from their savings to cover rising costs.
Rent affordability crisis: according to Zoopla, rents for a single earner are the highest in more than a decade
It also found that more than half expect their financial situation to deteriorate over the next 12 months
This is because households are bracing for further increases in the cost of essentials, including food and energy.
If parents feel they have to fully care for their returned children, this is likely to add to the tension.
Ellie Austin-Williams, a personal finance expert and founder of the website This Girl Talks Money, said: ‘It is increasingly common for once independent young adults to move back into the family home, and navigating the dynamics of this can be a challenge for everyone involved. .
“Whether it’s a welcome reunion or a burden, it’s important to make sure boundaries are set and respected.
“Consider discussing account contributions early to avoid later misunderstandings, work with them to set new financial goals, and break the taboo of ‘money talk’ by encouraging more open conversation on the subject.”