The research reveals that there are over 1.6 million Kidults in this age group that currently rely on friends or family, reflecting the extent to which the credit crunch has impacted on people’s finances.
The research reveals that the trend for relying on friends and family to provide a home is not unique to one particular social group and is affecting people across the whole of the UK. Whilst this trend is most prevalent amongst 18-34 year olds, worryingly, over 300,000 35-54 year olds have also found themselves in the same position. This amounts to a total group of more than 1.9million Kidults in the UK and with average rents of £441.78 per month, these individuals are saving £839million. It is hardly surprising therefore that the average first time buyer age has steadily risen to 29 years old.
Unsurprisingly, it’s in areas where house prices are traditionally the most expensive where more people are unable to afford to buy themselves. More than 270,000 adults in London alone currently live rent free and those living in the South of the country are twice as likely to live with others rent free compared to those living in the North East and North West of the country.
Nici Audhlam-Gardiner, Abbey Mortgage Director commented: “In the current climate many people have little choice but to return home or turn to their friends or family for somewhere to live at no cost. Whilst an adult living at home until their 30s is more associated with our continental cousins, Abbey Mortgages research shows that this is a trend that is on the increase here in the UK as well.
This time last year less than half a million people claimed to be living rent free.(2) Today this figure has leapt to almost two million.”
Nici Audhlam-Gardiner continued: “However, with larger house deposits required to get the better mortgage rates living rent free is a great opportunity for potential first time buyers to save money that can be put towards a deposit for a property of their own. At Abbey we are committed to helping first time buyers and last week we launched a new mortgage designed especially with first time buyers in mind. The 85 per cent LTV 4-year fix is market-leading and also has £250 cashback, free valuation and free legals.
“For those still saving for a deposit, we have a First Home Saver account which pays 5 per cent, with a minimum deposit of £100. You need to deposit between £100 and £300 a month and can save up to £50,000. It’s open to non-homeowners aged 16-35 years old. For people keen to save regularly, without the temptation of dipping into their savings, this account is definitely worth considering.”
Loading ...