Posts with tag: young people still living at home

The Young Rely on Inheritance to Buy Property

Half of parents do not think their children will be able to buy their own home without inheritance money, a study has found.

The lack of young people entering the property market has been caused by spiralling house prices and a shortage of affordable homes.

Homeownership among the young has dropped substantially in the last few years, as young professionals have to rent for longer.

Research has revealed that 49% of parents whose children have not yet bought a property believe that their offspring will depend on inheriting family money.1

The survey also found that one in six of those aged 25-34 who do own a house used inheritance from a relative for the deposit. This is significantly higher than the one in 20 over-55s who used inheritance to purchase their first property.1

The Young Rely on Inheritance to Buy Property

The Young Rely on Inheritance to Buy Property

One in ten of those who relied on inheritance said that it made them feel inadequate and dependent on others.1

Homeownership among 25-34-year-olds has decreased from 59% in 2003 to 36% in 2013, according to the English Housing Survey.1

Housing charity Shelter ordered the survey. Its Chief Executive Campbell Robb says: “No parent wants to think the only way for their children to ever own a home of their own is through losing someone they love.

“It’s a tragic consequence of our housing shortage that, even when they are working hard and saving what they can, a generation of young adults have no choice but to rely on the prospect of inheritance to have any hope of buying their first home.

“The failure of successive governments to build anywhere near enough affordable homes is leaving millions of young adults facing a lifetime of uncertainty either in expensive and unstable private renting, or stuck in their childhood bedrooms well into adulthood.”

Shelter has called on the next government to “make a real and lasting commitment to building the affordable homes we desperately need.”1

One 28-year-old who is struggling in this housing crisis is Richard Hill of Colchester, Essex, who works at the University of Roehampton. He joins thousands of young people living with their parents because they cannot afford to rent in London.

Richard explains: “It takes me nearly two hours to get to work and costs hundreds of pounds each month in travel.

“While I don’t want to still be living at home by the time I turn 30, it looks like it might be my only option. Even though I save every penny I have and cut costs wherever I can, it never seems to be enough with today’s house prices.

“I hate the thought that losing the people I love most in the world could be the one chance I’ll have to buy my own home.

“It’s ridiculous that so many people in my generation simply can’t buy without inheritance or a huge deposit from the bank of mum and dad. There’s got to be a better offer on the table for hard-working young people.”1

These shocking facts arrive at a time when asking prices are higher than ever. We revealed yesterday that a lack of sellers in the market is forcing house prices up. Read more: /average-property-prices-at-record-high-of-over-286000-in-april/


Why are Young Adults still Living at Home?

Published On: July 30, 2014 at 4:52 pm


Categories: Property News


The housing and homelessness charity Shelter have appealed for politicians to stop fuelling loan schemes that push up house prices, and instead build more affordable properties for the generation that cannot move out of their parent’s homes.

The charity referred to figures from Census data that reveal there are 1.97 million young adults in England who still live with their parents, and are employed. This equates to a quarter of everyone aged 20-34 in jobs.

A separate study discovered that of 250 young adults who live with their parents, almost half of them are not moving out because they cannot afford to either rent or buy a home, Shelter found.

Chief Executive of Shelter, Campbell Robb, says: “With the crippling cost of housing leaving over a million young adults trapped in their childhood bedrooms no matter how hard they work or save, empty nest syndrome could soon become a thing of the past.

“The clipped wing generation are finding themselves with no choice but to remain living with mum and dad well into adulthood, as they struggle to find a home of their own. And those who aren’t lucky enough to have this option instead face a lifetime of unstable, expensive private renting.

“Rather than pumping more money into schemes like Help to Buy, we need bolder action that will meet the demand for affordable homes and not inflate prices further.

“From helping small local builders find the finance they need, to investing in a new generation of part rent, part buy homes, the solutions to our housing shortage are there for the taking.”1

Some areas are more heavily affected by this problem, according to Shelter.

Why are Young Adults still Living at Home?

Why are Young Adults still Living at Home?

Castle Point in Essex sees 45% of their employed 20-34 year olds still living at home, while in Knowsley in Merseyside, the number is 42%.

The amount of young people still living with their parents in Solihull is 38%.

Sarah, 32, lives with her parents at their family home in Croydon. She works in online advertising, but has ended up living on and off with her mum and dad for the last decade.

She says: “I’m trying really hard to save up and get my own place, but today’s rollercoaster house prices means the goal posts keep moving.

“If I move out now, the reality is I’ll be stuck paying expensive rents for the rest of my life. I know I’m lucky to have a job and somewhere to live, but the thought that I’m going to be living like a teenager into my late 30s or even 40s is really disheartening.”1

Sarah’s fears are highlighted in the fact that those renting will spend about 30% of their income on housing, whereas homeowners pay just 20% on their house, says the English Housing Survey.

The proportion of young people in rental accommodation has been increasing, as house prices rise steadily, and most are priced out of the market.

This is accentuated in London, where the cost of rent has risen by over 11% in the past year, and the average annual income is only 2.23 times higher than the annual cost of renting, reveals the HomeLet rental index.

Average monthly rents in London is a staggering £1,142, more than double that in the rest of the UK, where rents cost an average of £694 a month.

Property values were also up in London, by a huge 20.1%, giving the average property a value of £492,000, comparing to £262,000 in the rest of Britain, a rise of 10.5% annually.