Six out of ten parents worry children won’t be able to afford a home

Research amongst 1,500 UK parents with children aged 0-15 years, conducted by 3Gem on behalf of Scottish Friendly, shows six out of 10 (58%) of parents are concerned their child won’t be able to afford to live independently. With over half (55%) worried that the cost of the deposit for a rented accommodation is out of their reach.

The concerns highlighted in Scottish Friendly’s research are borne out by the Institute for Fiscal Studies’ (IFS) data which showed that the number of UK adults in their 20s and 30s living with their parents has risen by over a third over the last two decades. The IFS report cites a number of contributing factors – accommodation costs amongst them. It exposes the extent to which Generations Y and Z have been priced out of a fundamental rite of passage into adulthood, leaving home.

Jill Mackay, Savings Specialist at Scottish Friendly said “The fact that six out of 10 parents worry their child won’t be able to afford to leave home is concerning. If we are to ensure that Generation Alpha, and those that follow Alpha, have a greater chance of being able to enjoy the rite of passage of leaving home – one last fully experienced by Gen X – then, collectively, we need to find ways in which to increase Gen Alpha’s financial resilience to ensure that independent living isn’t being denied to them for want of a rent deposit” comments.”

The modern mutual suggests one way in which to help build greater financial resilience amongst younger generations is by changing a small line in the current Junior ISA (JISA) regulations to enable extended family to set up a JISA on behalf of a child. That way when the child reaches 18 years old it has a nest egg. Currently, the rules only allow parents or legal guardians to set one up.

“You can’t put a price on the benefit of building greater financial resilience, but you can put a pounds and pence number on the impact of delaying doing it.”