There are many different groups of people living with their parents and the next generation of property market stakeholders are not only young adults. The following is a snippet of the data collected from respondents of our Big British Property Survey and collated in Reapit’s newly released interactive 2021 State of Lettings Report.
In this blog we look at why people are living with their parents, whether they are considering moving within the next year, whether they intended to buy or rent their next property, and what they would look for in their next property.
Why are people living with their parents?
In our Big British Property Survey, we asked respondents which statement best describes why they are living with their parents, and the results are indeed very mixed. Being a student was perhaps unsurprisingly the most selected option among 30.48% of respondents, but many respondents also said that they were living with their parents to save for a deposit (18.71%) or because they could not afford to buy (12.70%).
In 2017, when the ONS documented the milestones of journeying into adulthood, the first age at which more than 50% of young people had left the parental home was 23. Back in 1997, more than 50% of 21-year-olds had already left home. Given the rapid increase in house prices and rents, it is clear that the challenges facing individuals who want to enter the housing market are becoming steeper.
Are people living with parents planning to move in the next year?
Over 50% of respondents to our survey said that they were not planning to move over the next 12 months. However, the breakdown is more variable in different age groups, with the 24-34 and 55-64 segments clearly keener to move out than others.
For respondents who said that they were not asking to move, we followed up by asking what it would take for them to move within the next year (e.g., more affordable rental rates in preferred area; more shared ownership schemes; lower deposit requirements; greater support for first time buyers). Here are the top responses:
- More affordable properties in preferred area
- More affordable properties in general
- Greater support for first-time buyers
- Lower deposit requirements
- More affordable rents
- Higher income
- New job
Buying or renting?
We asked respondents living with parents whether they intended to buy or rent their next property, with a substantial 39.49% claiming that they were intending to buy, reflecting the percentage of respondents in our survey who said that they were saving for a deposit or could not yet afford to buy.
Affordability is certainly a challenge, particularly for young adults. A 2018 study by the Institute of Fiscal Studies, which looked at young adults in the housing market, found that almost 40% could not afford to buy even the cheapest property in their area, even with a 10% deposit.
With house prices and rents consistently rising across the UK, it is of little surprise that 35.33% of respondents living with their parents are not sure what their next move will be.
Money is not the only factor in choosing a property
In our Big British Property Survey, we asked respondents living with their parents what further considerations (other than money) they were looking for in their next property. Each respondent was able to select up to three choices, with a garden (46.88%), living space (34.87%), and proximity to family (34.87%) being the most in demand – this perhaps reflects the changes to consumer priorities over 2020-21, with the pandemic lockdown encouraging people to reconsider what they find valuable.
Although not everyone living with parents is a young adult, the bulk of those surveyed are primed to enter the property market at some point in the future, potentially as tenants. Reapit CEO Mark Armstrong considers The Future of Lettings in a special feature included in our State of Lettings Report.
Read more about the Future of Lettings along with all the other insights collected on tenants, landlords, and individuals living with parents in Reapit’s interactive 2021 State of Lettings Report.