It has been called 'the hotel of mum and dad' but few guesthouses have such favourable terms. As the housing crisis bites, a fifth of young adults are staying in the family home until they are at least 26 and the same proportion are not paying a penny towards their keep. A recent survey found that the proportion of adults living at home varied around the country, from just under 9% in the East Midlands to more than double that in London, where house prices and rents are highest. While many around the country contributed financially, the survey found that 20% were paying nothing at all. 
Young adults are being squeezed by low wages and rents, which have hit record highs, while those who want to buy a property are finding the monthly cost of renting is preventing them from saving enough to get on the housing ladder. Research published by the homeless charity Shelter showed half of tenants were unable to save a penny towards a deposit, while a quarter could only put by £100 or less each month. Mortgages are cheaper than ever before thanks to record low interest rates but the best deals are still reserved for borrowers with large deposits. 
Faced with this, young adults are increasingly returning to the family home in order to save money and parents who cannot afford to offer their offspring a lump sum seem willing to help. The survey found that 28% of adults were living at home because they were trying to save for a deposit. However, it also found that 30% were not saving any money. 
A spokesman for the company conducting the survey commented: “The hotel of mum and dad is often staying open for longer than many anticipated, our latest research shows. Rental costs and deposits or the need to save for a mortgage deposit mean that some children understandably have to wait before flying the nest. And, for some, moving out may never be an option.” 
Michael Day, 30, who lives with his parents in Bristol, says he has been caught between paying high rents and saving for a mortgage deposit. Rents for a one-bedroom home in the city are between £500 and £800 a month, while buying a similar property would cost about £130,000. “I don’t really want to move out to rent as it’s more than a mortgage but you need such a big deposit to get a mortgage so it’s been a bit of a vicious circle.”