Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Strategy. Read the original article for full details.

Parents Face £17bn Annual Cost from Adult Children Returning Home

Parents whose grown-up children have moved back into the family home could be paying an extra £17 billion a year in living costs if they do not seek a contribution to rent or bills, according to research by Key Equity Release.

The later-life mortgage adviser analysed the financial impact of the so-called “boomerang generation” and found that the additional cost of food and utilities is estimated at around £3,400 per household each year. This could total £17 billion across all affected households if adult children do not contribute towards costs.

Office for National Statistics data shows that more than 3.8 million families in England and Wales have adults living with their parents, representing around one in four households. In total, 4.9 million adults live with their parents, indicating that some households have more than one adult child at home.

The research highlights that parents aged between 54 and 62 are the most likely to have adult children living at home, which could affect their preparations for retirement. Adult children living at home are more likely to be male (61%) than female (39%), and London has the highest proportion of affected families at 27%. Additionally, nearly half (46%) of single-parent households have adult children living at home.

For UK letting agents and inventory clerks, these findings may be relevant when considering household compositions and the potential impact on rental demand and property management.