One in eight (13%) private renters aged between 18 and 35 years old have already moved home, as the cost-of-living squeeze prompts people to evaluate their living arrangements, according to new research from Fidelity International.
With rents rising by an average of 3.6% in October 2022, on top of the soaring costs of goods and services, many young renters are deciding to make the move back home in order to save. In addition to the 13% who have already moved home, a further 23% plan to do so in the next 12 months.
This is particularly the case for those 18-25-year-olds, with close to a third (31%) of this age group planning to move back to their family home. Renters in London are also the most likely (34%) to be planning a move back to their parents compared to other regions in the UK4. According to Rightmove, the average rent in London was £2,343 per month in Q3 2022, the biggest ever annual jump (16.1%).
Many are looking to move in with friends or find properties with more roommates to help spread the cost of their expenses. More than one in ten (11%) have moved in with friends due to rising costs, with 27% planning to do so in the next year. In addition, 14% have already moved to properties with more people to help manage their bills, and 26% say they plan on making the same move in the future. Finding cheaper accommodation is also a priority for many private renters with a third (33%) looking for a more reasonably priced rental property in the next year.
Renters planning to change their living arrangements expect to save £267 a month from their move. While almost a third (31%) of renters plan to use these savings for immediate needs such as everyday expenses or to pay off debts (21%), many are looking to put the money towards their future plans. Three in ten (29%) hope to build up their long-term savings, while a quarter 25% are saving towards a house deposit.
Emma-Lou Montgomery, associate director for Personal Investing at Fidelity International comments: “Times are tough with costs rising across the board and young renters are having to consider the different options on the table. While moving back home isn’t feasible or desirable for everyone, considering how you might be able to minimise the costs that you have power over Is worthwhile.
“For parents and other family members who might have welcomed a loved one back into their home this year, ensure you are considering your own finances too. With your household outgoings likely having risen, it’s important to reassess your own goals. Making sure you revisit your plans regularly will allow you to stay on track despite what life throws at you and your family.
“It’s encouraging that while renters are making the decision to change their living arrangements due to the cost of living crisis many are choosing to use the money they save for longer term ambitions. Saving money is getting more difficult so it’s reassuring that renters are being savvy and are thinking about putting money away for the future. Now is the time to make your money work as hard as possible, so consider all your options when trying to save. “
