Half of the Boomerang Generation says it is unlikely to move out within five years
Almost half of the ‘boomerang generation’ cannot see themselves leaving the family home within the next five years, it has been revealed.
A total of 49 per cent said this applied to their circumstances as they battle to clear debts and save for a home deposit.
The research defines the boomerang generation as those aged between 21 to 34-years old, who have returned back to the family home having previously lived away.
Strewth! The boomerang generation claims that it is saving an average of £483.41 a month
A combination of factors, such as student loans and other debts, mean many have no hope of stepping onto the property ladder soon after college or university.
Reducing their costs by returning to live at the family home is one way of saving for a deposit to buy a property of their own.
However, the research suggests that the boomerang generation doesn’t have much disposable income either.
A total of 54 per cent said they currently have some disposable income after they have contributed to household bills and essential spending.
But 71 per cent believe they will have a higher disposable income in six months’ time and 58 per cent of these are intending to pay off more debt.
It means parents are playing a vital role in supporting their child to improve their finances.
More than half – at 56 per cent – said they will provide financially to help their child move out.
Parents are charging their children an average of £152.80 a month in rent to help cover costs
To cover the cost of having their children living back home, parents are charging their children an average of £152.80 a month in rent.
It is perhaps therefore surprising that, of those who are saving, the boomerang generation claim to be putting away an average of £483.41 a month.
Meanwhile, 16 per cent of boomerangs say they are saving in excess of £900 a month just by living at home again. This amounts to more than £10,000 a year.
Robin Bulloch, managing director of Lloyds Bank, said: ‘There are a wide variety of factors that directly impact our spending and saving power and, while moving back home can feel like a step in the wrong direction in some ways, financially it can be a shrewd move to make.
‘By living at home, the boomerang generation is alleviating at least some of their living costs.
‘They can benefit from the financial backing of their parents whilst simultaneously increasing their own spending power, ultimately building a financial platform to support their next move.’
It comes after a 23-year old revealed earlier this week that she saves half of her salary but still doesn’t think that she will be able to buy a home for seven years.
She currently lives with her parents in south west London, so that she can save extra money over renting in order to save for a deposit.
She said: ‘Some months I save more than others. I always put 50 per cent of my monthly salary straight into another account so I can’t touch it and then if I have any disposable income left over at the end of the month, I will add that into the account as well.
‘Even though I don’t specifically know the timeframe of owning a property, I have enquired with a bank out of curiosity to see how much and how long it would take for me to save – and they said it is going to take a very long time.’