Civitas has conducted research that shows a significant jump in the number of young adults living with their parents.
The think tank explains how the proportion of those aged 20 – 34 living with their parents jumped from 19 per cent in 1998 to 26 per cent in 2017 – 900,000 more.
Looking at 23 year olds specifically, the proportion has increased from 37 per cent to 49 per cent over the last two decades.
The paper adds that after a consistent fall in the average household size in the 20th century – moving from 4.6 people in 1901 to 2.36 in 2001, the household formation rate first levelled off before rising again, being 2.39 in 2017 – the highest level recorded since 1999.
The paper goes on to say that this change in household composition varies “considerably” between different religions, adding weight to the argument that affordability constraints are playing no small part in driving the changing household picture rather than changing preferences.
Furthermore, Civitas points out that there is a big regional difference, explaining that the biggest jump in 20 – 34 year olds living with their parents was seen in London, where housing is the most costly, and the smallest increase was in the North East, where housing is correspondingly the least expensive.
“It is implausible to think that these patterns are not related, in some way, to pressures in the housing market that could be remedied in time,” concludes the report.
Legal & General Mortgage Club head of lender relationships Danny Belton says: “In certain parts of the country a combination of high houses prices and a lack of suitable housing stock for first time buyers means it can still be a challenge for those wanting to get on the property ladder.
“Saving for that first deposit, particularly for those in London where it takes on average 17 years for single FTBs to save, can also be a struggle. However, there are mortgage products and schemes available on the market to help those in this situation.
“Prospective borrowers who want to buy their first home should speak to a mortgage adviser. Mortgage advisers have extensive knowledge of the market and will able to walk them through the many routes to homeownership. FTBs may be surprised at just how many options are available.”