Four in 10 renters would consider moving back in with their parents so they can save enough to get on the property ladder.
A poll of 2,000 renters with an ambition to buy a home found while 52 percent of those considering it feel it’s a move backwards, 91 percent consider it a short-term sacrifice for a long-term gain.
While 22 percent estimate that making the move could allow them to save enough for a house deposit within a year.
However, for 22 percent, this simply wouldn’t be an option – and 69 percent wouldn’t want to be a burden on their parents.
It follows rental data from Hamptons, part of the Skipton Group which commissioned the research, revealing the average rent paid by someone leaving the parental home passed £1,000 per calendar month for the first time in 2023.
This means the average would-be tenant who didn’t fly the nest would have the opportunity to save up to £12,290 if they could live rent-free with parents for a year.
Currently, rising rents and the cost of living means the tenants polled are only able to save £187 a month towards their first house deposits.
But they reckon moving into the ‘Hotel of Mum and Dad’ could see them put as much as £808 away monthly.
It also emerged 20 percent feel it will take them more than five years to save for their first home while renting, with 63 percent saying their family are unable to contribute to their savings.
Jennifer Lloyd, head of mortgage products and proposition at Skipton Building Society, which recently launched its Track Record mortgage to help renters get on the property ladder without the need of a deposit, said: “People trapped renting is one of the biggest housing challenges we face across the country, which is having a massive impact on the fabric of our society.
“With escalating rents and the cost-of-living squeeze further impacting people’s ability to save for a house deposit, it’s making it almost impossible for people get onto the property ladder.
“So, it’s no wonder we are seeing a rise in the number of tenants considering a move back home. For those fortunate and willing to make this move, then it might be a vital first step in helping them to boost their savings.
“However, as the research reveals, we know for many tenants, this isn’t option for them. This is why it is important renters have more options available, like the Track Record mortgage, for them to buy a home when building a deposit isn’t an option.
“We want to empower more renters to achieve their home ownership aspirations sooner, without the help from the ‘hotel of mum and dad’ or ‘bank of mum and dad’ too.”
Of those who feel moving back in with mum and dad isn’t an option, one in three said there is no space for them at their parents while 27 percent would end up living too far away from work.
And 37 percent admitted they wouldn’t be able to give up their independence, but 23 percent simply wouldn’t want to live by someone else’s rules, according to the OnePoll.com figures.
The study also found 22 percent who would consider shacking back up with mum and dad would use the opportunity to pick up financial advice from them. While 20 percent believe it would reduce their commuting costs, and 36 percent think they’d be able to pay off debt more quickly.
To add to this, six in 10 would look forward to spending more quality time with their parents or guardians, if they moved back in.
Nearly half (45 percent) would enjoy regular home-cooked meals, 18 percent think they would benefit from more outdoor space and 17 percent would even love being reunited with childhood pets.
However, while 13 percent don’t think they would have to contribute anything to their parents for rent, the rest would expect to hand over an average of £252 a month.
Jennifer Lloyd added: “We know there isn’t one quick solution to addressing this huge societal challenge of tenants being trapped in renting cycles, with rents escalating faster than mortgage payments and the increasing costs of living, but doing nothing isn’t going to solve this UK housing issue.
“The Track Record product will not be able to help everyone and is only part of the solution for this group of people, but as a lender, we’re taking a stand to offer innovation in this space to help turn generation rent into generation buy.”
