The REAL cost of 'kidults' living at home
What’s the latest?
A whopping 79% of parents still have at least one grown-up child living with them at home, leaving them an estimated £20,000 out of pocket.
House builder Keepmoat calculated the additional costs of a grown-up child (aged 21 and over) living with their parents, from the weekly food bill, electricity, broadband, TV subscription and water, to other expenses such a car and household insurance premiums.
Even factoring in any financial contribution from the child, the estimated extra cost for parents is around £2,000 EACH YEAR.
With the so-called ‘kidult’ moving out of home just after their 30th birthday, this brings the total bill over nine years to around an eye-watering £20,000 per child.
That’s MORE than the amount needed for an average 5% deposit in the UK.
Why is this happening?
The recent housing boom has caused affordability to become increasingly stretched, as house prices climb quicker than earnings. So it's little wonder that 34% of kidults live with their parents to save for a deposit to buy their first home.
The other top reasons were:
- Failing to earn enough to move out (33%)
- Liking the quality of life living at home (23%)
Who does it affect?
Financially, there is little doubt that parents take the hit. And Tim Wray, finance director at Keepmoat, said the research should be a "wake-up call".
He explained: “With initiatives, such as Help to Buy, the property market isn’t necessarily unreachable for younger generations.
“With initial deposits as low as £5,000, parents wanting to give their children a leg up on the property ladder should compare that to the £20,000 they could spend over the course of nine years.”
Sounds interesting. What’s the background?
It may not come as a complete surprise that this domestic arrangement could be costing more than just hard-earned cash. According to Keepmoat's research:
- 40% of grown-up children don’t help with cooking
- 35% don’t contribute to household chores
- 24% don’t contribute towards the running of the family home
But the survey revealed that it's not all bad news. Some 35% of parents understand their kidults better after having lived with them in adulthood, while just 11% of them reckon their relationship has suffered.
Article taken from http://www.zoopla.co.uk/discover/property-news/the-real-cost-of-grown-up-children-living-at-home/#YGlj6ZpiVCrXX5T5.99