Five million adults still living with their parents as housing crisis deepens

Around five million adults are still living with their parents amid a “housing crisis”, a report warns. It says a generation is “stuck in limbo”, with many feeling a “sense of lost youth” as a result.

An overwhelming 98% of those who remain living with their parents cannot afford to buy the average first-time buyer home in their area based on their own income, the research by the Skipton Building Society and Oxford Economics found.

But while saving up for a deposit is an issue, it says ongoing costs are a much bigger factor. Even if they did move out, more than nine out of 10 adults face housing costs that would swallow at least 45% of their income.

• M&S brings back popular product 10 years after being axed from shelves
• DWP confirms everyone who qualifies for 2025 Winter Fuel Payment up to £300

The problem goes beyond London and the south east, where property prices are highest. According to the report, fewer than 10% of adults living with their parents in the most affordable parts of Britain can afford the average first-time buyer home locally.

In fact, the least affordable place was found to be Cardiff, where just 2.3% had enough to buy a typical first time home based on their own incomes alone. Even in the most affordable area, the city of Aberdeen, it was 30.4%.

Skipton described the situation as a “housing crisis”. Stuart Haire, its chief executive, said: “This data lays bare the systemic failure of our housing ecosystem. It’s a failure that is locking millions of young people out of independence, home ownership, and long-term financial stability.”

The Home Affordability Index Report says the number of adults living with parents in is on the rise, growing 4.2million in England and Wales in 2011 to 4.9million in 2021, based on previous studies.

The research defines adults living with parents as those aged 18 or over who are not in full-time education, unemployed due to ill-health, or carers for their parents.

Just over half - 51% - of adults who live with their folks say they feel a sense of lost youth. Their most common frustrations include a lack of personal space, limited freedoms, and arguing with their parents.

Nine in 10 hope to move out at some point, but even among those saving for a deposit, 82% say they feel a “long way off” or “have a good way to go”. Nearly seven in 10 surveyed have never moved out, dispelling the myth that many are “boomerang kids” returning to the nest for a short time period to save, according to the report.

It also argues for action to reform property taxes to make it easier for first time buyers to get on the property ladder and for older people to downsize.

According to the study, homeowners whose adult children live with them could release an average of £72,400 in equity by downsizing to a home with one fewer bedroom in their local authority area.

The places where parents could release the most from downsizing are in London and its surrounding area, due to high property prices there. In parts of West London, the average parent could release £304,400. Meanwhile, in West Wales the average is £36,000.