Rising bills push more young people to stay at home, UK study finds

More young Britons say rising household bills are preventing them from moving out, according to the Skipton Group's biannual Home Affordability Index, compiled by Oxford Economics. The index combines official data with a survey of about 2,000 adults living with their parents to understand why many struggle to establish independent homes. The findings show nearly 98% of adults living with their parents could not afford to pay what the average first-time buyer would pay in their area. If they tried to finance a home on their own, nine in 10 would face mortgage or rent payments, council tax, utility bills, insurance and maintenance costs that would consume about half of their income. If they bought a flat, the proportion would be higher, at eight in 10. The calculations assume a single purchaser in the same local authority as their parents.

Leoni Clancey, 21, embodies the trend. She moved out with her boyfriend nine months ago after years of saving, only to see their funds depleted by utilities, council tax and rent. She now shares a room with her 10-year-old sister at her mother’s home. “It just doesn’t feel like it’s my place,” she says. “Being able to afford running a home, it’s insane.” She adds that the money she had saved before moving out was spent after the move. “When I first moved in I did have some savings ready, by the time we’d moved out they’d gone.” She notes that the main problems were utilities, council tax and rent. “It’s not great in terms of not being able to see my partner, not having the life that we had… I just don’t think it’s fair.”

Experts say the trend is harming both young adults and parents. Skipton Group chief executive Stuart Haire says many young people move out nearby to stay close to workplaces and social networks, but rising costs threaten a lost opportunity if action isn’t taken. “My heart goes out to them. I think it’s a lost opportunity, and one that we really need to address,” he said.

The trade body representing estate agents, Propertymark, said rising living costs are becoming financially testing for many people trying to step onto the housing ladder. It noted that those early years of home ownership come with costs that can outpace wage growth, even for those who are able to buy.

On policy responses, the government has pointed to a higher minimum wage as a relief for some households and argues it is building the housing stock needed to turn the tide. A government statement cited progress toward its goal of delivering 1.5 million more homes and said, in effect, that the country is “turning this crisis around” by expanding supply and supporting buyers.

People seeking to buy but facing tight budgets are advised to consider several options. Some lenders offer mortgage products that defer payments for the first few months to ease moving costs. Individuals can also open a Lifetime ISA before age 40 to save for a deposit, with the government adding a 25% bonus to savings up to £1,000 per year. Shared ownership programs allow buyers to purchase a stake in a property and pay rent on the rest. In Wales, first-time buyers may qualify for a loan to help with the cost of a new-build home. These pathways are intended to broaden access for those with lower incomes who otherwise face steep upfront costs.

For Leoni and her partner, the immediate plan is to remain at home for now while they rebuild savings and secure a deposit for a property of their own. “I’m saving for the money that I’ll need to do the place up. I’m saving for furniture. I’m saving for bills, and I’m saving for an emergency fund,” she says, outlining a plan that centers on rebuilding a financial cushion before attempting to move out again.