Thursday, Apr 09, 2009
Does this describe you?
Telegraph: Number of grown-up children returning to live with parents triples amid recession
The number of 18-34 years olds living rent free with family and friends has more than tripled as the recession bites, new figures suggest. Numbers have risen to 1.6 million, up from 500,000 this time last year, according to the findings by Abbey Mortgages. A further 300,000 people aged 35 to 54 also find themselves in this position, with the South being the hotspot for so-called Kidults. Nici Audhlam-Gardiner, Abbey's mortgage director, said: "In the current climate many people have little choice but to return home or turn to their friends or family for somewhere to live at no cost. It means there's now more than 1.9million Kidults in the UK and with average rents of £441.78 per month, these individuals are saving £839 million.
Posted by drewster @ 01:26 AM (841 views) Add Comment
14 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. Frank Bell said...
I hope that "living rent-free" phrase is wrong.
The kidults should be paying their parents or friends a reasonable amount each week for their expenses. I am sure they eat enough grub and poor old Mum helps out with some of their washing etc, etc.
I gave my Parents £45 a week back in 1990 and thought that was cheap, that was about the same as renting a mid-size room in a house share if you compare.
2. britishblue said...
This is one of three factors that is creating huge downward pressure on the LOWER end of the rental market
a. A huge increase in accidental landlords - creating more supply
b. Circa 1 million Eastern Europeans going home - vacating properties
c. Young people moving back with parents - vacating properties
3. sold out said...
"Pent up demand" goes home to stay with mum & dad.
another reason why there will be no recovery in house prices or rents anytime soon.
4. uncle tom said...
Several years ago, when people started bleating about a housing shortage justifying ludicrous prices, I did a few calculations that led to the rather startling conclusion (amongst others) that on any given night, the majority bedrooms in the UK have no-one sleeping in them.
In other words, the population of the UK, given an economic squeeze, has enormous scope for reducing its need for housing.
More importantly, this also removes the resistance to further house price falls, once the population perceives house prices to be falling (i.e. now).
This is one of the factors that led to my conclusion that the market would substantially over-correct, before rebounding to a sustainable level.
5. need-a-crash said...
I always had to pay a nominal "rent" to my parents when I lived at home after university - I feel hard done by now!
6. d'oh said...
I moved out of home at 17 to go to university. Always stood on my own 2 feet etc. ever since. Now 39, and returning to live with Miss D'oh rent free in the large granny flat underneath my mother's house. Makes sense - allows us to start a business with low overheads in a wonderful part of the world (coastal Queensland, Australia), and we can be around to help out as parents and grandparents now getting old (71 and 92). Never expected to be in this position, but both Miss D'oh and I are looking forward to it. Nice not to have to worry about where the next month's insane fixed costs (£1500 a month where we live before food, petrol etc.) are going to come from.
7. george monsoon said...
This is really one in the eye for Crash Gordon, empty properties yielding little or no tax
So let me see if I have understood the situation..
Banks won't lend so less properties changing hands..
Migrant workers returning home vacating property, increasing the supply..
Young adults returning home, vacating property, further increasing supply..
Unemployment, inflation, maxed out credit cards, mewed to the hilt families and ever more extortionate taxes forcing reposessions.. Increasing supply.
So we have a nation of empty properties. Who is going to buy these? who has the money?
It will be a tenants dream come true.. this will push rents right through the floor...
8. stillthinking said...
There is a shortage of housing in the UK. What kind of bizarre yo-yo have we got ourselves into. Back to the parents, out to the 200K loans, back to the parents...
D'oh. I was under the impression that Australia generally had reasonable prices, I am a bit disappointed in what you say.
9. inbreda said...
Stillthinking - I got the impression that d'oh was emigrating
10. mr g said...
"mewed to the hilt"
Excuse my ignorance, whilst I can hazard a guess, can someone define "mewed" please?
11. timmy t said...
UT - if your calcs are correct and there really are that many vacant bedrooms in the UK, then GB's claims that "our situation is different because we have pent up demand for housing" becomes a bit of a joke. It makes "housing" a luxury item, in that people will only buy it if (a) they do actually need it or (b) they think they will make money out of it. If times are good, you might well ditch the Ford Focus for a Maserati, but if they aren't then you won't. Housing is no different.
12. timmy t said...
Mr g - Mortgage Equity Withdrawal
13. stillthinking said...
aaaaaaaah!
14. d'oh said...
stillthinking - Am emigrating back home, as the weather is better and I think that Australia will do better in the long run. Having said that, house prices are bonkers in Australia, relative to salaries. As I discovered from a report linked to on this site a few months ago, where I and my family come from, the Sunshine Coast in Queensland, has the honour of having the highest house prices to salaries in the world...beating Honolulu, London, New York etc. at a ratio of 9.6. I know of one plot of land that was sold for $11,000 that was sold 12 years later for $500,000. My parents were farmers. Value of our farm for development doubled yearly from under 1 million to 8 million over a period of 3 years. Absolutely crazy, as the whole area is supported by retirees and tourism and pot plantations. The crash is beginning there now, but it is still early days.