Adult children living at home could cost their parents a combined £17 billion if they don’t pay rent, Key Equity Release estimates.
Rising numbers of adult children living with their parents in the UK are adding to the financial pressure on older homeowners saving for retirement and clearing their own mortgage, according to the equity release adviser.
Government figures suggest more than 3.8 million families in the UK have adult children living at home – around one in four in England and Wales – with the majority living with parents aged between 54 and 62.
Key estimates the resulting additional costs for parents are around £3,400 a year, from food and use of utilities.
Adult children living at home are more likely to be male (61%) than female (39%), with the highest numbers found in London, where 27% of families having adult children at home. Almost half (46%) of lone parent households include an adult child.
Will Hale, CEO of Key Equity Release said: “Adult children living at home is a long-term trend across the UK with the recent tough jobs market for graduates and rising rent costs as well as the struggle to raise deposits for mortgages and meet lender affordability requirements adding further pressure.
“Parents inevitably want to help out children and that is demonstrated by the numbers of adult children returning to live in the family home. Helping children can come at a cost however and parents need to consider their own financial situation.
“They are most likely to face the added financial costs of adult children living at home at a time in their lives when they are looking to pay off their mortgage and maximise pension saving for their own retirement.”
