Shortly after I graduated from University, I returned back home to live with my mum and dad.
After the experience of living in halls, this was a bit of a shock to the system.
I was fortunate to have quickly found a well paying job in financial services, at a time when property prices were more affordable than they are today, which allowed me to move out into an apartment within 18 months.
According to the insurance company Aviva, one million more younger people are likely to find themselves living with mum and dad over the course of the next decade.
This is largely the result of rising house prices and the affordability (or lack of it) of property.
Aviva found that 3.8 million people between the ages of 21 and 34 will be living at home with their parents by the year 2025.
This is a third higher than the current level.
They also forecast a big rise in the number of households which have two or more families, expected to rise from 1.5 million to 2.2 million during the same period of time.
This all assumes that house prices continue to rise during the next decade at the same pace they have risen during the past ten years.
Clearly, living at home with mum and dad isn’t all bad news.
Assuming there is sufficient space for the number of people living in the property, ground rules are established and a financial contribution towards the costs of running the home are made, these arrangements can work very well.
Aviva say that the advantages of living with mum and dad include having other people around for company, cheaper living costs, and more people to share the household chores.
Lindsey Rix, managing director of personal lines at Aviva UK, said:
“Multigenerational 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.”
For parents who are concerned about their adult children returning home in the future, Financial Planning can help with an understanding of what financial impact this might have on long term plans.
http://www.aviva.co.uk/home/home-advice/first-home/article/multigenerational-living-adult-children/
