by Mark Johnston
More young adults are living with their parents longer!
First time buyers today must find more than twice as much money in order to purchase a property than their parent had to.
Parents are seeing their children living in the family home for longer as they are now struggling to raise the large deposits that are now required.
Dr. Jane Hamlett, a lecturer in modern British history at the university of London, suggested that “it is almost like a return to the Victorian era, were it was very commonplace for adults to live with their parents in to their 30s as they saved to establish a home of their own”.
A report carried out by house builder Taylor Wimpey revealed that in order to save a deposit to buy a house, many young adults are being forced to live back with their parents, which for many is causing family relationships to suffer.
A recent survey found that 1 in 10 young people who still lived with their parents feared that they could potentially be in their late 40s even early 50s before they are able to fly the nest.
A report showed that at 25 to 34 years of age almost 1 in 5 children still live in the parental home and at 35 to 44 years of age almost 1 in 20 are also still under the parental roof.
Despite this fear and the prolonged wait to buy a house, recent research found that 35% of adults still living at home said that they were not prepared to give up luxuries such as holidays while they saved for a deposit.
Just as many young adults are not happy about the fact they are having to stay at home longer neither are parents. Many parents have admitted that they are too struggling to keep afloat and therefore they did not have any spare funds to help their children on to the property ladder.
With this in mind many children are now turning from the ‘bank of mum and dad’ to the ‘bank of grandma and granddad’.
The reason behind this it seems is that grandparents have much more equity from their homes available to them, therefore they can use equity release scheme to help provide the much needed deposit.
However, this in turn can cause a huge burden on other family members later down the line as there are lots of costs associated with getting older.
It is estimated that one in seven adults are providing support to both upper and lower generations and two thirds of these people feel that this is putting extra strain on their finances.
A study by the Co-operative bank found that many middle aged people are paying more than £3,500 a year supporting both their parents and children financially. It therefore seems that this extra pressure from supporting two generations is preventing them from having the lifestyle they had hoped for as their children reach adulthood.
Robin Taylor, head of banking at the Co-operative said “compared with previous generations, the higher costs of housing, providing care for the elderly and everyday living, have resulted in a squeezed generation”.
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