Boomerang kids – could you do it?
With several of the Government’s Help to Buy schemes coming to an end and house prices in some areas continuing to go up with seemingly no Brexit-factor it’s easy to see why, when the average deposit needed here in Gloucestershire is £21,000, some young people are becoming what is known as “boomerang kids”. Increasingly people in their 20’s and 30’s are taking the brave step to move back in with Mum and Dad and back to their childhood bedrooms, enabling them to more rapidly save towards a deposit.
That may make some of you shudder… the peeling Take That or Girls Aloud posters and a single bed, but it can be a smart move. With an average house share costing around £500 plus bills and a one bed flat and bills costing upwards of £1000 it’s easy to see the attraction. Earlier this year research from Aviva showed that up to 3.8 million 21 – 34 year olds were back under Mum & Dad’s roof – using all the hot water and in some cases doubling the food bills. It is worth noting also that if parents take their offspring back home they are likely to see an increase in home insurance from the laptops and posh bikes that will undoubtedly accompany the prodigal son or daughter’s return and just like student days the electric will take a bashing.
Another way of getting a feeling of home but perhaps not needing parents or indeed grandparents to stump up cash to said child is to rent from Mum and Dad. A surprising 730,000 parents are “parent landlords” according to a recent Telegraph article. There are benefits, commonly no issues over decorating and maintenance and lower than average rents. This is quite possibly something that will continue as a trend as students leave university with debts, and rents persistently rise in key cities like London and Bristol.
Generally the media coverage of Millennials returning home is quite negative but there can be advantages as parents get older and if we think about it, this isn’t really a new thing. In days gone by grandparents would move in with their children as they got older and young people would only leave home once they married. So the reasons may change but if you have a family to help you get on the market then why not go for it – just maybe give Dad’s Taxi a rest this time.
- Average house price (using a terraced property as a guide for first time buyer)
- BTL case study
- 3.8 million at home