15% of adults are taking an extended stay at the ‘Hotel of Mum and Dad’ and 20% of adults are waiting until they are at least 26 years old before leaving the family home, according new research from Nationwide Mortgages.
30% admit they are not saving any money while at home. This is despite 66% being in full or part-time employment. And while age 26 and above is the choice time to leave for 20% of Brits, 20% fail to contribute towards any bills, rent or even food, while 26% abscond from doing any chores.
According to the survey, 36% of those still at the ‘Hotel of Mum and Dad’ have younger siblings who have already moved out of the family home, before their big brother or sister.
According to Nationwide’s poll, women are more financially frugal with 22% admitting a lack of contribution to mum and dad, compared to 17% of men. However, the survey reveals women are the better savers, with 42% putting money away, compared to 32% of men. Conversely, men are more likely to fritter away their spare cash (12%, compared to 7% of women).
Half of adults still living at home are in full time employment (50%). Despite job stability, increased financial pressures mean 58% can’t afford to move out. The figures show women as being more likely to struggle with their finances, as 63% don’t have enough money to flee the ‘Hotel of Mum and Dad’, compared to just half of men (52%).
28% of adults want to stay at home because they are trying to save a deposit for their own home, while 13% admit it’s easier to live at home.
36% took out a mortgage when they left the family home. Renting is a still a popular stepping stone to gaining independence with more than two in five (44%) choosing a privately rented home and a further 7% rented social housing.
Women are likely to choose to rent somewhere privately (47% compared to 40% of men). However, men are more likely to opt for a mortgage (39% versus 34% of women).
Andrew Baddeley-Chappell, Nationwide’s head of policy, mortgages & savings, said: “The ‘Hotel of Mum and Dad’ is often staying open for longer than many anticipated, our latest research shows. Rental costs and deposits or the need to save for a mortgage deposit mean that some children understandably have to wait before flying the nest. And, for some, moving out may never be an option.
“For parents, a delayed offspring departure often incurs unforeseen and prolonged costs and expenses, since our research shows a surprising number of adults who, while continuing to live at home, do not contribute towards bills or even save any money to be able to enable them to move out. In fact it seems the more financially comfortable the living situation, the less incentive there is for children to move out. Parents looking forward to becoming empty nesters have to rely on the hope that their children are putting away enough savings to move out of their own accord.
“A normal hotel wouldn’t let someone stay free of charge, so why should the ‘Hotel of Mum and Dad’?”