Skipton’s research follows rental data from Hamptons, part of the Skipton Group which revealed the average rent paid by someone leaving the parental home passed £1,000 per month for the first time in 2023.
The study says with rising rents and the cost of living, the tenants polled are currently only able to save £187 a month towards their first house deposits – but if they were to move into the ‘Hotel of Mum & Dad’ they could put as much as £808 away monthly.
And with 20% feeling it will take them more than five years to save for their first home whilst renting, 63% admit their family are unable to contribute to their savings.
Skipton Building Society head of mortgage products and proposition Jennifer Lloyd says: “People trapped renting is one of the biggest housing challenges we face across the country, which is having a massive impact on the fabric of our society. With escalating rents and the cost-of-living squeeze further impacting people’s ability to save for a house deposit – it’s making it almost impossible for people get onto the property ladder so it’s no wonder we are seeing a rise in the number of tenants considering a move back home.
“For those fortunate and willing to make this move, then it might be a vital first step in helping them to boost their savings. However, as the research reveals, we know for many tenants, this isn’t option for them.”
Skipton launched its Track Record mortgage, allowing would-be homebuyers to borrow 100% of the value of a house, in May last year and says it has received £62.4m in applications to date.
