Up to 1 million more young people could be back living at home with their parents by 2025 if house prices continue to soar, new research shows.
According to Aviva, there could be 3.8 million young people aged between 21 to 34 living at home with their parents by 2025, up from 2.8 million in 2015.
Ballooning property prices and deposits are making it increasingly difficult for people to get on the housing ladder.
Aviva pointed towards ONS figures which show average UK house prices rose 52% between 2005 and 2015, up from £184,000 to £279,000.
When asked about situations when they might consider this living arrangement for six months or more, saving for a house deposit (57%) was the second most common reason given, beaten only by caring for an unwell relative (71%).
While two in five (42%) of all UK adults believe living as part of a multigenerational household would be a positive arrangement, this rises to 66% of those already living in this type of household, suggesting there is a gap between people’s perceptions of multigenerational living and the reality.
Those living in a multigenerational household say the main benefits are: other people being around for company (72%), cheaper shared living costs (62%) and more people to share chores (56%). Only 12% of those already in a multigenerational household say the disadvantages outweigh the benefits, compared to 21% of all UK adults.
Lindsey Rix from Aviva said: “Multigenerational living is often seen as a necessity rather than a choice, particularly when adults are forced to move back in with family to help save for long-term goals like buying their own house. But rather than being an inconvenience, our report shows it is often a positive experience, with shared living costs reducing financial strain and the added benefit of constant company.
“If house prices continue to rise at their current rate, we can expect the number of multigenerational houses to continue to grow. What we need from our properties – and how we go about protecting them – will also adapt as the UK’s way of living evolves.”
Tougher affordability checks from lenders and rising house prices have made it increasingly difficult for first-time buyers with smaller deposits to get on the property ladder.
Low interest rates combined with the economic recovery have done little to reduce the need for rented housing, while house price inflation ahead of wage growth has pushed property prices out of reach for many.
A recent study by the Resolution Foundation found that the housing ladder is rapidly disappearing for most young working households on modest incomes. According to the research, over-45s now account for three-quarters of all home owners and that only one in 10 young people are likely to be on the property ladder in 2025.
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