A survey by Compare the Market also found as many as 29% of 21 to 34 years olds were struggling to pay their rent specifically and three quarters found their housing costs ‘challenging’.
Yet 23% had actually considered moving back to their family home as prices have continued to rise.
The research also found over a fifth of people in this age group already live in their family home, 33% are in private rental accommodation and 27% own a home with a mortgage. One in 10 own a property outright.
And whilst many are living in their family home because they cannot afford to pay rent, just over a third are doing so whilst they save for their first home.
Helen Phipps, director at Compare the Market, offered advice to renters who were facing high living costs.
“We would encourage people who are struggling to look for ways to make savings where possible and ensure that they do not pay more than they need to for everyday expenses,” she said.
“People could start by making a note of what’s coming in and going out, avoiding allowing expenses like insurance and utilities to auto renew, and ensuring that they do not slip onto variable or ‘standard’ rates for credit cards.
“Comparing costs online using a price comparison website may also be helpful.”
She added advice for families who were welcoming new occupants back to their home.
“It is important that you let your home insurance provider know,” she added. “Your insurer will need to be aware of how many people live in your home, as this can impact how much you pay.
“If your home insurance premium increases significantly, you could make savings by switching your provider. Homeowners could save up to £211 on their home insurance through Compare the Market.”
