Adult children living with their parents

Over the last ten years we are seeing more adult children still living with their parents as housing; renting and buying, becomes more unaffordable, especially in cities like the capital. The government hasn't helped by neglecting housing for the last decade, but more blatantly in the last 12 months by letting Help to Buy lapse and not replacing it with any substancial buying scheme.

We see this quite a lot with first-time buyers. It's sometimes even the case that they had been renting somewhere previously but have now moved back home to live with their parents to make bigger strides toward saving a deposit for their own home. With the launch of Skipton's 100% mortgage product, and perhaps other lenders who follow suit, this may be less of a necessity going forward.

This is something that is, unfortunately, becoming more and more common. It was already difficult for first-time buyers to save enough and earn enough to get a place of their own, but the cost of living crisis has exacerbated this. Being based in London ourselves, we are used to seeing new buyers being priced out by expensive property and strict lender affordability. Younger people are holding off buying and living with parents for longer to try and save more deposit which isn't a terrible idea. However, if you are thinking of buying your own home, you should always consult a mortgage advisor before completely writing it off. You might be able to move forward with a purchase sooner than you think. Making the most of schemes such as shared ownership and higher loan-to-value mortgages could get you onto the property ladder earlier.

We have noticed a significant rise in the number of adult children living with their parents, particularly in London & the South East. The main factors driving this trend include the escalating property prices and the increasing burden of higher interest rates. Even the recent introduction of Skipton's 100% mortgage still falls short of providing a feasible solution for many prospective homeowners in London and the South East.

We anticipate that this phenomenon will persist as long as the housing market remains challenging and interest rates stay elevated, making it increasingly difficult for young adults to secure a foothold in the property market."