According to a survey of around 3,000 adults by Lifetime ISA (LISA) provider OneFamily, approximately one in five adults aged 18-40 are currently living with family to save for their first home.
The latest Office for National Statistics (ONS) figures show that the average UK house price is £271,000, so a deposit could be equal to around £27,100. This is also over seven times more than the average yearly income of £37,600.
Saving for a deposit can be increasingly challenging with heightened rent and cost-of-living pressures.
The average rent stands at £1,371 per month, so moving in with parents or family can lead to significant savings and mean that the deposit can be accrued faster.
Jim Islam, CEO of OneFamily, said: “What we’re seeing here is that independent young adults are having to return to their family homes, just to be able to save up enough for a deposit. For Jessica and Zak, it made smart financial sense to move back in with their families for a while. But for many, this can be a tough call to make and a difficult readjustment.
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“Buying a home feels out of reach for a lot of young people right now, but not all hope is lost. There are tools out there and careful planning, saving, and the right financial education and support can help hopeful homebuyers get on the ladder.”
