UK Construction Media

A million more youngsters to live with parents over next decade

News   •   May 31, 2016 16:24 BST

A million more young people are likely to be living with their parents over the next decade, according to Aviva.

According to insurance company, Aviva, more than a million young people will find themselves living with their parents, with the main reason being the affordability of housing. The housing affordability crisis and economic stress on the young, reflect statistics from the report, which show the increasing difficulty of getting on the housing ladder.

In a study by Aviva, 3.8 million people aged between 21 and 34, will be living at home by 2025.

Research by Aviva suggests that the desire for people in their 20s and 30s to own their own home, is still strong, with 83% of people citing it as important.

The number of households containing two or more families is also expected to rise, from 1.5 million to 2.2 million.

Aviva say that there are advantages of sharing a house with other couples, such as having other people around for company, cheaper living costs and more people to share chores.

A total of 66% of adults that co-habit said they found it to be a positive experience.

Lindsey Rix, Managing Director of personal lines at Aviva UK, said: “Multi-generational 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.”

Only 12% of adults cohabiting said the disadvantages outweighed the benefits.

According to the National Statistics House Price Index, property prices rose by 52% in the last decade, from £184,000 in 2015 to £279,000 last year. Over that period, average wages have increased by only 30%, and the incomes of young people have been especially hard hit by the recession and its prolonged aftermath.

Recent research from the Centre for Economics and Business Research consultancy revealed that the “Bank of Mum and Dad” has become increasingly crucial in helping young adults get on the housing ladder. The research suggested that it could help cover around 25 % if all mortgages, contributing to total sales of £77Bn.