Turns out cutting down on Pret and avocado toast doesn’t cut it
Young Brits are having to bunk with their parents in order to save for a house deposit in what NatWest is terming the ‘age of re-nesting’.
Almost one-in-four parents say their children have had to move back home in a bid to get onto the property ladder, living with them for an average of 1-2 years before moving out once and for all.
The research shows that rising rents and high property prices have created a “stay-at-home generation” who prioritise financial security over flying the nest.
A whopping 23 per cent of the parents surveyed said they have had their adult children return to live at home after initially moving out.
And many children don’t return home alone, either. Almost one in four (22 per cent) of parents polled report that their child moved back in with a partner or family of their own.
Thankfully, there is a degree of sympathy for their children’s plight.
Eighty-five per cent of parents agree it’s more challenging for first time buyers today than it was in their era.
Which makes sense, given that average house prices have seen an increase of over 1000 per cent in the last 40 years.
To help youngsters reach their home ownership goals, NatWest has introduced its Family-Backed Mortgage, which allows eligible customers to apply for a joint mortgage with a family member or friend, while still buying the property in their own name.
The new product aims to boost the amount a customer can borrow by combining their income with the income of a family member or friend.
The family member or friend who is being added to the mortgage is required to get legal advice, so there is clarity amongst all parties when entering the arrangement.
Barry Connolly, Managing Director of Home Buying and Ownership at NatWest, commented: “We are committed to providing more pathways to home ownership and helping first-time buyers to achieve their goals.
“The research released today shows that many children across the country are having to return to the homes that they grew up in well into their 20s & 30s to give themselves the financial headroom to save for a deposit.
“Many are welcomed back by their parents, but the research today suggests that these living arrangements are not without sacrifice for all parties.
“Our Family-Backed Mortgage offers an innovative solution, allowing friends or family members to help first-time buyers own their first home by adding their income to the mortgage application.
“We hope that it instils hope in our customers that their home ownership dreams can be realised.”
