Boomerang generation: Almost one in five parents expect adult children to move back into the family home because of rising living costs
- 17% of adults are planning for one of their full-grown children to move home
- A third say they will need to do so if the cost of living crisis worsens
- 43% of parents have friends whose adult children have moved back in with them
Increasing number of young Britons are expected to move back to their family home because of rising living costs.
Almost one in five parents are planning for at least one of their adult children to move back in with them, according to research by credit card firm Capital One UK.
Rampant inflation and rising rents are putting immense strain on the finances of the young – many of whom do not have savings to fall back on.
Make yourself at home: The number of ‘boomerang children’ is expected to surge thanks to the rising cost of living
Rents in particular have been rising at a frightening pace. Last year alone, average UK rents rose by 12.1 per cent, according to property data firm Hometrack.
Hometrack’s latest report found that rents for a single earner are at their highest level for over a decade.
The firm also found that, while demand from renters is 46 per cent above average, total supply of rental homes is 38 per cent below normal.
Estate agent Zoopla says there is no sign of a slowdown in rent prices due to chronic supply and demand mismatch. The firm predicts that rents will rise by between 4 per cent and 5 per cent in 2023.
Capital One’s study, which surveyed 2,000 mums and dads across the country, found that as many as one in three parents are facing the prospect of having their older children move back in with them if their situation gets worse.
It also found that nearly half of parents already have friends whose adult children now live in the family home again.
Will parents be able to cope?
Three quarters of UK parents claim they would welcome their children back with open arms if they were struggling financially, according to the study.
Although some parents may be happy to re-accommodate their children, the cost implications of them returning could hit families hard.
The average parent is expecting their energy and food bills to rise by £272 a month, according to Capital One’s research.
Separate research from investment firm Arbdn found that almost two thirds of UK adults over 55 have seen a drop in disposable income.
More than half have not been able to save at all or as much as they had previously and more than a third have taken money out of their savings to help with rising costs.
Rental affordability crisis: Rent prices for a single earner are at their highest for over a decade, according to Zoopla
It also found that more than half expect their financial situation will get worse over the next 12 months
This comes as households brace for further cost rises in essentials, including food and energy.
If parents feel they need to fully cater for their returning children, this will likely cause further strain.
Ellie Austin-Williams, a personal finance expert and founder of website This Girl Talks Money, said: ‘It’s becoming increasingly common for once independent young adults to move back into the family home, and navigating the dynamics of this can be challenging for everyone involved.
‘Whether a welcomed reunion or burden, it’s important to ensure boundaries are set, and met.
‘Consider discussing bill contributions early on to avoid any later misunderstandings, work with them to set new financial goals and break-down the taboo of ‘money talk’ by encouraging a more open conversation around the topic.’
