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Moving in with parents for three years can help you save a deposit

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09/04/2021
A rent-free stay in the family home is one way to quickly boost your savings pot for your first property
Moving in with parents for three years can help you save a deposit

Couples that move in with their parents for free and save their rent would need to live in the family home for just over three years (37 months) in order to save a 10% deposit of £26,700.

That’s according to Ocean Finance which did the sums based on an average property price of £267,000 and monthly rent of £725.

The finance firm said that as many as 1.25 million couples live with their parents in a bid to save some money to purchase a house.

After analysing 347 areas, Ocean Finance found that couples in Hull need to move in with their parents for the longest – 65 months – to save for a deposit. If they swapped their monthly rent payments for a rent-free stay, Hull couples could save an average of £4,944 each year.

Couples in Sheffield and Nottingham will also spend a long time living with parents saving for their home at almost four years (45 months), saving £7,200 and £7,140 respectively a year.

At the other end of the scale are those in Bristol and Reading, who would have to live with their parents for the least amount of time at just over two years (27 months), saving £11,940 annually, on average.

Sarah Neate, spokesperson for Ocean Finance, said: “Moving back in with parents is a hard choice, but for many couples, it is the only option to save up for a house deposit. House prices have increased to a record high at £267,000 on average, which means affording the 10% minimum required for a deposit is not very realistic if you are paying the average £725 per month in rent.

“However, if you do have the option to live with your parents rent-free, our research has shown that you could be ready to get on the property ladder within three years.”

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