More people in late 20s still living with parents

An influential think tank study concludes that the phenomenon of young adults, particularly those in their 20s, still living at home with their parents is not a myth but based on reality. Data from the Institute for Fiscal Studies (IFS) shows that the proportion of 25 to 34-year-olds living with their parents has increased by more than a third in the past two decades.

Researchers found that this trend of living with parents is primarily driven by men and those approaching 30. High rents and rising house prices are the most significant reasons for this shift. In 2006, about 13% of 25 to 34-year-olds in the UK lived with their parents, but by last year, this proportion had risen to 18%. This means that approximately 450,000 more young adults are still living at home, with the increase mainly concentrated among those nearing 30.

Among the 25 to 34-year-old demographic, men are more likely to live with their parents than women, with proportions of 23% and 15% respectively. The IFS points out that this age group has changed in recent decades, with them being less likely to marry and have children. At the same time, the ethnic diversity of this age group is also increasing, with young British people from Bangladeshi and Indian backgrounds being more inclined to live with their parents. During the pandemic, the proportion of adult children living with their parents peaked, with more than one-fifth of 25 to 34-year-olds choosing to do so.

Although parents may have hoped their adult children would leave home after the pandemic, many in their 20s wish they had the means to do so. The IFS states that economic factors are the main obstacles, with rising rents and house prices exacerbating this trend. Zac Murphy, a 25-year-old from London, previously shared a flat with two friends but has since moved back in with his parents. He told the BBC of his concerns, stating that unless he wanted to live in a "shoebox," renting alone was impossible, and buying a home remains out of reach.

Another individual, 32-year-old business manager Jessie Warring-Hughes, described in April how she was struggling to save for a house. She said moving back home felt "strange" as she was back in her childhood bedroom and risked regressing to her teenage years. The IFS concludes that some young people can save money by living with their parents. About 14% have accumulated more than £10,000 in savings within two years, compared to an estimated 10% of young people living in private rented accommodation. However, this is not the case for everyone, as some may face higher commuting costs or have moved back home due to financial difficulties.

Bee Boileau, a research economist at the IFS and author of the report, stated: "For some, living with parents offers the opportunity to build savings faster than renting, which is particularly advantageous in high-cost areas like London. However, others may be living with their parents due to a bad knock (such as a breakup or redundancy) or simply because they cannot afford to live independently." Housing issues are one of the biggest concerns people raise when contacting us through "Your Voice, Your BBC News."