Credit, Collections & Insolvency News
New research from Compare the Market has revealed that almost one in four (23%) 21–34-year-olds who rent privately regularly consider moving back into their family home, while nearly one in three (32%) sometimes think about doing so.
The largest proportion say that this is due to general living costs being too high (55%), while four in ten (40%) want to save money for buying a property. Nearly three in ten (29%) say that they are struggling to pay their rent specifically, with almost three quarters (73%) saying that they found it challenging to afford their rent in the last year. Over one in five (22%) have considered moving back in with their family to save money for another reason, such as travelling.
Over a fifth (21%) of 21-34-year-olds currently live in their family home, while a third (33%) live in private rental accommodation. More than a quarter (27%) live in a home that they own with a mortgage and less than one in ten (8%) in a property that they own outright.
Among those living in their family home, over one in three (35%) say that they are choosing to do so because of the high cost of living, which means that they cannot afford to live elsewhere. A similar proportion (35%) say that they are saving up to buy their own home, while a quarter (24%) say that they simply prefer living with their family.
Many respondents currently living in their family home contribute towards a variety of household expenses. Over half (54%) help to pay for food shopping, while one in four (26%) contribute towards subscription services and a similar proportion (26%) to energy bills.
Most 21-34-year-olds currently living in their family home say that they plan to move out within the next year (64%). Among them, four in ten (40%) intend on buying their own property, while one in four (24%) plan to move into rented accommodation. Shopping around using a price comparison website can be a helpful way to find deals that could save you money when preparing for a move.
Of the more than one in three (36%) 21-34-year-olds who do not plan on moving out of their family home in the next year, the largest proportion (40%) plan to move out in three-to-four years. More than one in three (35%) intend on moving out in one-to-two years, while just below a fifth (18%) plan on moving out in five-to-six years.
Helen Phipps, Director at Compare the Market, said “A significant number of young renters are considering moving back into their family home due to high living costs. We would encourage people who are struggling to look for ways to make savings where possible and ensure that they do not pay more than they need to for everyday expenses.”
