Tenants are thinking of moving back to the family home to save a deposit to buy their own place.
That’s according to Skipton Building Society, which found that four in 10 renters have considered moving home to boost their savings pot.
The vast majority (91%) of tenants said that moving home would be a “short-term sacrifice for a long-term gain”.
But over half (52%) of aspiring buyers told the mutual they felt living back at home was “a move backwards”. And 69% wouldn’t want to be a burden on their parents.
However, more than a fifth (22%) reckon that living with parents could mean they have enough saved within a year for a house deposit.
Barriers to buying
The biggest hurdle to getting onto the property ladder for many first-time buyers is a lack of a deposit, as well as having the savings to cover overall buying costs (such as Stamp Duty).
With rising rents and the cost-of-living crisis, the tenants polled are currently only able to save £187 per month towards their first house deposits – but if they were to move home, they could put as much as £808 away monthly.
Jennifer Lloyd, head of mortgage products and proposition at Skipton Building Society, said: “People trapped in 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 to 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.”
Skipton launched its Track Record mortgage in May 2023, which allows tenants with “a strong track record of rental payments” to borrow the total cost of their first property over a maximum of 35 years.
