98% of adults living with parents can’t afford to leave: "The problem is the cost of everything"

98% of adults living with their parents (ALPs) cannot afford to buy the average first-time buyer home in their area based on their own income, according to new research by the Skipton Group, created in partnership with Oxford Economics.

Even removing the barrier of a deposit barely moves the needle – 97% still remain priced out, facing unaffordable essential housing costs if they were to move out.

The problem goes far beyond just London and the South East – in even the most affordable regions of Great Britain, fewer than 10% of adults living with parents can afford the average first-time buyer home in their local area.

Stuart Haire, Skipton Group CEO, 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. When 98% of adults living with their parents can’t afford to leave, they’re not just facing a housing crisis – they’re facing a crisis of opportunity.”

Andrew Montlake, CEO at London-based Coreco, said: “The problem is the cost of everything. Even if you can manage the mortgage payments, add the household bills on top and for many buyers, even with a fair deposit, the numbers just don't stack up.

"Only building more homes will solve this issue and give aspiring buyers the ability to fly the nest. Because right now, their wings are being clipped by higher interest rates and the brutal cost of living.”

Emma Jones, Managing Director at Runcorn-based Whenthebanksaysno.co.uk, agreed: “The problem for first-time buyers is that it's no longer just about the mortgage payments, it's about the broader cost of living and all the other bills that go with homeownership.

"We have seen plenty of innovation from lenders this year in terms of improving affordability but for many that's simply not enough. The issue is the lack of homes being built and the prices people are having to pay to get that first step on the ladder.

"With house price growth slowing in 2025, affordability may have improved slightly in 2025, but the overall picture remains grim. Many aspiring buyers have an Everest to climb.”

Babek Ismayil, CEO at homebuying platform OneDome, said we have to build more houses: "This research from the Skipton confirms official data published last week showing that, in the 21st century, affordability has been declining sharply. 

"Out of 317 local authority areas in England and Wales, 9% were affordable in 2024 compared to 69% in 1999. That says everything about the immense hurdle buyers have to clear these days to get on the property ladder.

“In Northern Ireland, Wales and Scotland, affordability is still achievable but in many areas of the South East, especially the capital, it's almost non-existent. Many people simply cannot afford to make the leap from their parents' home to their own home. We have to build more houses, and build them quick.”

Bob Singh, Founder at Uxbridge-based Chess Mortgages, referenced an old sitcom: "We are living in a nation of Timothy’s! Ronnie Corbett would be proud. Despite lenders extending lending multiples and reducing deposits, first-time buyers are preferring to stay put rather than flee the nest.

"Buying a house seems a distant dream for many due to rising house prices and stagnant wages. Further product innovation may be required to offer interest-only products for an initial period within affordability and products that allow, for example, sub-letting.

“A “buy-to-let-to-move-in-later-type product may be the last bastion to kick start the market and allow people to buy a first home.”

Michelle Lawson, Director at Fareham-based Lawson Financial, said while the cost of living is high, people's priorities are also an issue: "Lenders are doing a great job with product innovation but the costs of living are still far too high. That said, people's priorities are definitely different than they used to be.

"Significant outgoings on bank statements for a lot now include daily takeaway coffees, bought lunches, countless food deliveries and takeaways, costly car finance, multiple subscription services and more.

“People will find the money for the things they want to find the money for. I am a believer of earlier financial education to help budget prioritisation.”

Katy Eatenton, Mortgage & Protection Specialist at St Albans-based Lifetime Wealth Management, said for many buying that first home is a bridge too far: "Welcome to the land of the unaffordable. Lenders have been proactive in finding new ways to solve the affordability crisis in 2025 but the reality is that house prices are still extremely high relative to incomes, and often just too high.

“Add bills on top and general living costs, which remain high due to inflation, and for many aspiring buyers it's a bridge too far.”

Eamonn Prendergast, Chartered Financial Adviser at Bromley-based Palantir Financial Planning Ltd, added: "Britain’s ‘trapped generation’ is the clearest sign yet of a broken housing market. When 98% of adults living with parents can’t afford to move out, even without the hurdle of a deposit, it shows the problem isn’t just saving but the mismatch between wages and housing costs.

“This has huge knock-on effects: delayed family formation, weaker labour mobility and intergenerational strain as parents can’t downsize. Without bold reform on housing supply and tax, the gap will only widen.”