Under 35? Then welcome to generation rent – the age group that’s leaving home later, renting for longer, and often struggling to get on the property ladder. But why? And how can we change this?
To learn more, we went out and asked the experts: you. Thanks to your answers, we can show you the big picture – where young people are living, when they’re moving, and why. What’s more, we’ve come up with some useful tips to help you fly the nest sooner.
A quarter of you live with your parents or family. It’s not for want of trying though – 10% have already moved out once, but had to return. However, your chances of moving out improve with age: 83% of 31-35 year olds either rent or own property, compared to half of 21-25 year olds.
Overall, 36% of you own your home. This varies with location, but not necessarily with house prices. As you’d expect, less than one in three young Londoners – who've seen prices rise by nearly 70% in ten years1 – have bought property. Yet in the East of England, where house prices have increased by 38% in the same period2, almost half of 21-35 year olds own their home.
You’re most likely to buy a house when you’re in your late twenties, with home ownership rising from 17% among those aged 21-25, to 38% among those between 26-30. However, this trend slows after people hit their thirties: over half of 31-36 year olds haven’t made it onto the property ladder.
1https://www.bbc.co.uk/news/business-41684812
2https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/housepriceindex/september2017#house-price-index-by-english-region
Over a quarter of young people live at home – but why? Most of you (41%) simply can't afford your own place. It's not surprising, since salaries aren’t increasing at the same rate as living costs. For under-30s, renting a one-bedroom home takes almost half their pay packet3.
Living at home can help cut costs, and a fifth of you are staying with family to squirrel away funds for a house deposit. This is certainly a big job: first-time buyers typically shell out 133% of their annual salary on a down payment4.
Interestingly, 15% of you say you're living with your family because you want to. This might be to care for relatives, or simply because you love a home-cooked meal (we don't blame you!).
Do 21-35 year olds still living at home in the think they'll ever be able to afford their own home?
So, is generation rent destined to live up to its name? Almost half of you think otherwise: 46% believe they'll be able to buy their own home in the future. Yet one in four of you are pessimistic about your chances of home ownership, while the remaining quarter are unsure.
Your doubt seems to increase with age – or perhaps with time spent living at home. Of those staying with family, over a third of 31-35 year olds think they’ll never afford their own place, compared to a quarter of 26-30 year olds, and one in five 21-25 year olds.
Also, the older you get, the longer you think it’ll take to move out. Those aged 31-35 estimate they'll leave home after three and a half years, while those between 21-25 reckon it'll take 2 years and 9 months.
Young people in Wales are the most pessimistic about their chances of buying a home – only a third think it'll ever be a reality for them. However, this may improve, as the country's recently seen a big rise in average income, while house prices are increasing more slowly5. Young people in the North East are the most likely to return home after living independently – but they’re not letting it get them down. Over half are sure they'll buy a house in the future, making them the most optimistic in the UK.
3.https://www.theguardian.com/money/2016/jun/13/cost-of-renting-one-bed-property-soars-in-uk
4.https://themoneycharity.org.uk/media/March-2017-Money-Statistics1.pdf
5.https://www.bbc.co.uk/news/uk-wales-40001100
See how close you are to independence by using our moving-out cost calculator. It estimates the average monthly rent and mortgage payments for your area, plus living expenses like utility bills and council tax. If you’re thinking of buying a place, remember to compare mortgages to get a deal that fits you.
Enter town or districtThis data is based on a 2,000 respondent OnePoll survey of 21-35 year olds based throughout the UK, conducted in August 2017.