Still live at home? You may be saving a bundle!
Published 8 October 2014 by Hayley Cox
£17.1bn a year is the sum mums and dads with grown-up kids living at home are saving their offspring.
That’s because, if they don’t charge them rent, generous parents across the country are saving their grown-up kids a staggering £17.1 billion a year* by letting them live at home.
We have worked out that it costs £12,450** a year to live in your own place. So, where does this figure come from? Well, the average cost of renting a one-bedroom flat in the UK (outside London) is around £6,300, while council tax for a Band A property (including the 25% single person discount) is £737. Add to this an average annual gas bill of £729, electricity bill of £577, water rates of £393 and a total of £3,677 for all your other living expenses for the year, like food, toiletries and broadband, and it adds up to a sizable sum.
The ONS*** revealed earlier this year that 3.3 million Brits aged between 18 and 34 still live with their parents. When it costs this much to move out, it’s perhaps not hard to see why.
And when we say these Brits are making a saving by living at home, we really mean it. Not only do they not have to fork out for all those expenses listed above, but they may not have to worry about making a contribution at all.
A survey**** conducted for us revealed that two-fifths of stay-at-home kids never pay rent to their mum and dad. On top of that, they can probably enjoy tucking into groceries their parents have bought, borrowing toiletries purchased for the home and using the broadband their mum and dad pay for – all without paying a penny.
It’s no wonder 17% of respondents say they prefer to live at home.
Saving up for somewhere special
However, not every adult living under their parents’ roof is doing so entirely through choice. More than half admitted they could not afford to either rent or buy. And more than a quarter of those surveyed revealed they were saving up a deposit to put down on their own place.
Despite the money it saves, it can be difficult living with your folks once you’ve reached adulthood. You may long for the privacy of living alone so you can come and go as you please. Perhaps you simply want to have a fridge stocked with your favourite foods, use the bathroom without someone else knocking, and go out without having to answer texts about where you are.
This doesn’t have to be a pipedream though. Now you know how much you’re saving by living at Hotel Mum and Dad, you could start putting some of that cash – whatever you can afford – towards your own escape fund. It may take a few months or even longer, but by budgeting carefully the sweet taste of independence could actually be within your grasp.
*All data taken from postcodes of UK’s 24 largest population centres (not inc. London). Average rent for each from http://www.home.co.uk/ + Average council tax for each (for Band A property with 25% single person discount) (not inc. N Ireland) + ONS data and national data for average food, broadband, gas, electricity and water (Scotland averages do not include water rate) = Average annual cost of living [£12,450] x 3.3 million x 41.6% of 18-34-year-olds living at home who pay no rent.
***OnePoll questioned 1,000 adults aged 18 and over between 8th August and 14th August 2014. 500 respondents were aged between 18 and 34 and living with their parents. 500 respondents were aged 18 and over and had children aged 18 to 34 living at home with them.