The latest ‘Hotel of Mum and Dad’ report revealed a quarter of the nation’s millennials and young professionals now moving back home to save money for a deposit.
Children who move back home to save money cost their parents over £1,600 during their stay, a year-on-year increase of 83% according to MoneySuperMarket.
The latest ‘Hotel of Mum and Dad’ report revealed a quarter of the nation’s millennials and young professionals now moving back home to save money for a deposit.
Emma Craig, money spokesperson at MoneySuperMarket, said: “With house purchases flatlining since the June 2016 Brexit vote – from a yearly rate of 8.2% to just 0.9% in June 2019– it’s perhaps not surprising that children are staying longer at the ‘Hotel of Mum and Dad’.
“And with kids at home for longer, it’s natural parents are feeling the pinch even more.
“While our report shows they’re clearly happy to help out financially, it’s important to work out what those extra costs are upfront in order to ensure harmony at home.
“Both generations can then be transparent about any contributions being made to the household budget, so that no one receives an unexpected bill on moving out day.”
The findings show that returning children are staying with their parents for longer at an average of 10.3 months, which enables them to save £6,829 overall.
While the average rent contribution is £212, nearly half of children (48%) don’t offer to pay anything during their stay.
Popular reasons cited for moving back in with parents include the rising cost of living (26%) and Brexit (11%).
The cost of housing and catering for a returning child is increasingly having an impact on parents’ finances, with over twice as many parents cutting back on lifestyle choices.
Some 44% admit to limiting holidays, weekends away and luxuries to be able to accommodate their children, compared to 19% in 2018.
