As house prices continue to climb, the pressure to put enough money aside to build a suitable deposit is getting even heavier. As a result, those who are desperate to get a foot on the housing ladder are exploring every avenue to make their money work harder - including moving back in with their parents.
This is a solution that is only set to grow in popularity as the housing market progresses along its upward trajectory, with the need to save a deposit proving to be one of the strongest motivators for forming a multi-generational household. According to research by Aviva, 57% of respondents said that saving for a deposit would be the main incentive for moving back in with Mum and Dad - a figure that was only beaten by the number who mentioned caring for an unwell relative (71%).
For some, moving back in with the family may be viewed as a step backwards in terms of life progression, but interestingly, a large number of people questioned in the survey actually viewed it as a positive arrangement: 42% of those asked said that it would be advantageous, while 66% of those who already live in a multi-generational home stated that the benefits far outweighed any disadvantages. Main benefits included having other people around for company (72%), cheaper living costs (62%) and shared chores (56%).
"Multi-generational living is often seen as a necessity rather than a choice, particularly when adults are forced to move back in with family to help save for long-term goals like buying their own house," commented Lindsey Rix of Aviva. "But rather than being an inconvenience, our report shows it is often a positive experience, with shared living costs reducing financial strain with the added benefit of constant company."
So, if you're finding it a struggle to amass a decent deposit while paying rent and other bills, it may not be so terrible a thing to move back in with Mum and Dad. However, there are other things you can do to maximise your savings potential…
Trimming your expenditure by making - and sticking to - a strict budget is the key way to make sure you have a bit left over to put into a savings account. Take a hard, impersonal look at your spending - by scrubbing off takeaway coffees or having a few extra nights in instead of a wild night on the town, you may be able to claw some savings back.
Once you have a bit of excess cash to hand, it's important to find the right home for your money so that it works as hard as possible. If you're a first-time buyer, you may want to look into the Government's Help to Buy: ISA, which will give you a 25% top-up to put towards your first home. Other regular savings accounts may also be worth investigating as they will encourage you to put something aside every month.
Of course, saving a deposit is only half the battle - once you have enough put away, you will need to find a cost-effective mortgage to fund the rest of your purchase. To give you an idea of what's out there, check out our first-time buyer mortgage best buys.
Search our best buys for a competitive first-time buyer mortgage
Check out the top Help to Buy: ISAs
Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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