I can't afford to move out of my parents' house due to rising living costs

Leoni Clancey and her boyfriend were able to move out of their parents' homes and into their first rental house together for a few years. However, just nine months later, all their savings had been used up on living expenses, and they both had to move back in with their parents. Now, 21-year-old Leoni is sharing a bedroom with her 10-year-old sister.

Leoni is one of a growing number of young people in the UK who cannot afford to buy or rent their own home. According to figures from property and finance company The Skipton Group, nine out of ten young adults living in the country would see nearly half of their income spent on living expenses if they moved out.

The Reality of Returning Home

Although she gets on well with her mother and sister, Leoni says, "It just doesn't feel like it's my place. It's not great not being able to see my partner, not having the same lifestyle we had, so we've had to take a major step back from the freedom that I had. I just don't think it's fair."

She describes the situation as "crazy," saying, "I had no choice but to move home." She explains how their savings quickly vanished: "I had some savings set up when I first moved in, but by the time we'd moved out, they'd gone. I'd say the main issues were the utilities, council tax, and rent."

Adults Living with Parents

In 2011, there were 4.2 million adults living with their parents who were not in full-time education or caring for a relative. By 2021, that figure had risen to 4.9 million, according to the Office for National Statistics.

The Skipton Group commissioned Oxford Economics to produce its biannual Home Affordability Index. The index uses data from the Office for National Statistics and house price surveys, along with a survey of 2,000 adults living with their parents, to explain the situation.

According to the study, nearly 98% of adults living with their parents could not afford to pay more than the average first-time buyer would pay for a house in their area. Even if they could afford a deposit, nine out of ten people would face mortgage or rent payments, property tax, utility bills, insurance, and maintenance bills that would use up more than half of their income. If they were to buy a house, the figure would drop slightly to eight out of ten.

These estimates are based on a single individual buying a home alone and in the same local authority as their parents. Stuart Haire, the Skipton Group's chief executive, says that many young people want to move out nearby to remain close to their jobs and friendship networks.

"My heart goes out to them. It's a lost opportunity and one that we should really worry about," he says. The report also highlights the financial consequences for parents, as they may be unable to downsize if their adult children are still living at home, resulting in a significant loss of equity.

Same Costs on Lower Wages

The trade body representing estate agents says that rising living costs are "becoming financially challenging for many people, particularly those working out their finances." It states that "society must recognise that the costs associated with the first few years of home ownership are much higher than those for maintaining an existing home."

This group faces the same rises in utility, insurance, mortgage, rent, and maintenance costs as well as other expenses. Leoni says she and her boyfriend will remain at home for the foreseeable future. They are saving again, this time for a deposit to buy their own house, as well as enough to pay for all the associated expenses.

She explains her new savings strategy: "I'm saving for the work I'll need to do on the house. I'm saving for furniture. I'm saving for bills and I'm saving for an emergency fund."

While many people may enjoy living with their parents, Dan Wilson Craw, deputy chief executive of Generation Rent, says that a lack of housing options can make starting a career or a relationship more difficult.

"We need to build more social homes to encourage people on lower incomes to fly the nest, and homes of all sorts in the places where new jobs are created," he says.

The government claims that increasing the minimum wage is helping, but acknowledges that "a generation of young people is locked out of homeownership." It states, "we're turning this crisis around by building the 1.5 million homes this country needs."