Rising UK House Prices Forcing Young Adults To Live With Parents
The latest research reveals that the number of young adults living at home in the United Kingdom is likely to go up from 2.8 million to 3.8 million during the next ten years, signaling a critical shift in the structure of families in Britain.
Based on recent official statistics, 2.8 million adults aged between 21 and 34 are today still living with their parents compared to the 2.1 million reported in 2005.
The reason for this new trend has been due to the complexity involved in buying a home which is a result of rising real estate prices.
Insurance group Aviva has estimated that if housing prices in UK continues to increase at the current pace, the number of young adults living at home with their parents would go up to 3.8 million in 2025.
New Economics Foundation
So far, the traditional pattern was that young adults in their 20s would shift out of their parental homes to buy a new house and start a family. This trend has been disrupted in recent times due to the relative drop in economic opportunities available to the current generation along with high house prices and rising rentals, forcing them to live at home longer than they would like to.
According to research conducted by Aviva the desire to own a home remains strong within people in the age group of 20s-30s, with 83 percent of them terming the decision to move out and buy a home as important.
Many find it difficult to get social housing because of low supply or simply aren’t able to afford rent. A small percentage of this demography moves back into their parent’s home, sometimes with their partner so as to save money to buy a house in the future. The Aviva survey revealed that nearly 45 percent of these individuals cited free childcare as a reason to move back home.
Surprisingly a majority of those being forced to live with their parents have not found it unpleasant. Around 66 percent said that it was a positive experience since it resulted in sharing of costs and chores, as well as providing company to each other.
According to the latest reports from Office for National Statistics House Price Index, property prices in UK have risen 52 percent in the past decade going from £184,000 in 2005 to £279,000 in 2015. Average income of young people has however risen by only 30 percent as a result of recession and the consequent slowdown in the economy.
A recent report released by the Centre for Economics and Business Research has highlighted the new trend of parents supporting the purchase of a house for their child referring to it as the Bank of Mum and Dad. The report said that this could cover almost 25 per cent of all mortgages this year.
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