More than half (58%) of grown-up children aged between 18 and 34, are still living with their parents, highlighting the financial struggles they face as they attempt to buy their first home, online mortgage broker Trussle has found.
The number of 18-34s in London still living with their parents surges to nearly three quarters (74%), which brings to light the affordability issues continuing to face the capital.
Ishaan Malhi, chief executive and founder of Trussle, said: “The fact that so many young people can’t afford to move out of their parents’ homes in fear of not being able to get onto the property ladder is alarming.
“Too many of them are forced to put their lives on hold in a bid to get onto the property ladder. At Trussle we’re fighting for fairer mortgages to ensure that the process is transparent and simple.
“And in turn, a process that will help young people feel empowered when embarking on what should be an exciting, hassle-free journey of buying their first home.
“Getting a mortgage is often one of the biggest financial and emotional commitments a person will make in their lives and ensuring the industry is supporting young people as they take this step is crucial.”
Surprisingly, the North East of England is the area with the highest number of grown-up children still living at home with the figure reaching 81%4. Conversely, Yorkshire and Humber has the fewest with just 22% of under 35s still living with their parents.
Half (50%) of those living with their parents are doing so to save for a house deposit and more than a third (36%) admit they simply can’t afford to live alone.
The majority of 18-34s (59%) said the process of saving for a deposit is causing them stress. This follows a separate study which found nearly half of 18-34-year olds ranked house buying and selling as one of their top three personal concerns.
Meanwhile, in a bid to support their children’s saving ambitions, almost half (48%) of parents said they would rather their grown-up children live at home than rent, so they can save money for a housing deposit.
What’s more, nearly a quarter (23%) aren’t charging their grown-up children rent, to ensure they can save as much as possible and eventually get onto the property ladder. Instead, they rely on them to help around the house.
In response to the mounting financial stress and frustration over the inaccessibility of the property market and ‘broken mortgage system’, Trussle has been campaigning for fairer mortgages.
It hosted a march, calling on the banks and housing associations to ensure homeowners get the best deal when applying for their mortgage.
The broker also launched a ‘digital march’ where prospective and current homeowners signed up online against the unfairness of the mortgage system’s unfairness and barriers facing homeowners today.