Couples that move in with their parents would need to live in their family home for 37 months in order to save for a home deposit, reveals a report by Ocean Finance
Couples that move in with their parents to save on rent would need to live in their family home for 37 months, just over three years, in order to save up for an average home deposit, a study has found.
The report, by personal finance experts Ocean Finance, said “a rent-free stay in the family home is one way to quickly boost your savings pot for your first property.”
Ocean Finance looked at the latest Office for National Statistics (ONS) data to find out the average rental price in 347 areas in England, and calculated how many months it would take to save for a 10% house deposit, which it said is about £26,700 ($36,768) in England, and £50,100 in London.
Couples in Hull would need to move in with their parents for the longest period of time – 65 months – to save for a deposit. They would save an average of £4,944 each year.
For couples in Sheffield and Nottingham, it would take nearly four years (45 months), during which they would save £7,200 and £7,140 respectively per year.
Those in Bristol and Reading would have to live with their parents for the least amount of time, at just over two years (27 months), saving £11,940 annually on average, to save up.
If those living in the cheapest boroughs in London, such as Bexley and Sutton, could save their monthly rent payments by living at home, it would take nearly four years (46 months) before they could afford a 10% deposit for the average £50,100 London home.
This is likely to rise over time, as London prices increased by £25,926 since January 2020, the report said.
Sarah Neate, editor-in-chief at Ocean Finance, said: Moving back in with parents is a hard choice, but for many couples, it is the only option to save up for a house deposit.
The report cited research that showed nearly 34% of parents say they had a negative experience after their child and partner moved in.
Neate suggests that for those worried about causing friction with their parents, it is important to set boundaries before moving in to allow everyone their own personal space.
Help with housework and avoid treating your parent’s home like a hotel. Don’t forget to stick to your budget too – the more you save, the quicker you can move out again, she said.