The number of adults aged 25-34 living with their parents could be set to grow, as property prices continue to rise, according to a new study from Aviva insurance.
Analysis carried out by the insurer shows that the number of adults in this age group, living with parents, has risen by 37% over a 10 year period, increasing from 903,000 to 1.23 million – an additional 331,000 people. If this growth pattern continues at the same rate over the next decade, the UK could see a further 452,000 people aged 25-34 living with parents in 10 years’ time.
The number of UK ‘children’ aged 21-34 living with parents has also grown considerably during this period, from 2.2 to 2.9 million, an increase of 29%.
This growing trend of multi-generational living corresponds with a 45% increase in house prices for first-time buyer homes. ONS figures show the cost of the average first UK home has risen from £146,000 to £211,000 over the same period(3).
The findings are supported by a separate study carried out by Aviva, examining the attitudes of 500 UK ‘children’ aged 16-34 who live with their parents.
This study found that respondents expected to be 28 years of age on average before they moved out – although one in 12 (8%) said they didn’t ever expect to leave their current residence. The proportion of respondents who expected never to move out of the parental home rose to 13% amongst those aged 25-29 and 18% amongst people aged 30-34.
Home-buying is apparently an even bigger challenge. A third of people aged 16-34 said they didn’t expect to ever own a home, and a fifth (21%) predicted they’d only own a home if and when they inherited one. Of those who felt they would own a property one day, 31 was the average age at which they expected to get on the housing ladder.
Happy at home?
When asked how they felt about their current living situation, the majority of adults (47%) living with parents said they were ‘very happy’, while just 16% said they were unhappy with their circumstances. However the number of discontented dwellers increases with age. For adults aged 30-34 still living with parents, the number of ‘very happy’ people falls to 31%, while ‘unhappy’ inhabitants rises to 28%.
There is also an expectation – and a seeming acceptance – of the situation, as 59% of adults living with parents say they expected their domestic arrangements. That said, the proportion of people who are surprised to be living with parents grows with age: 35% of people aged 30-34 aged they did not expect their living circumstances.
Money is key – but one in four ‘children’ like being looked after
When it comes to reasons for living with parents, financial reasons are way ahead of any other considerations. Nearly two thirds (62%) of adult children living with parents say that they can’t afford to move out, while 48% say they live with family to save money.
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