Homeowners who have adult children living under their roof are spending £1,200 on average more than their 'Empty Nester' peers every year on daily household expenditure, says a new report.
There are 2.7 million ‘full nest households ’ in the UK where adult children are living at home, according to Government figures which also suggest that more than a quarter of adults aged 20-34 are still living at home.
The 'Meet the Full Nesters' report from the Scottish Widows' think tank Centre for the Modern Family examines the financial and emotional impact of adult children continuing to live at home.
One in three of 'Full Nesters' say they have cut spending on everyday items such as groceries, and 16 per cent have been forced to take out a loan to cover bills. Just over a quarter report that they are spending their savings to meet costs.
"This research highlights the very real pressures being felt by Full Nesters as a result of the rapid emergence of the 'Never Fledged Generation'," said Carolyn Fairbairn, Chair of the Centre for the Modern Family. "With many parents raiding their savings or putting their retirement plans on hold to cover the cost of their adult children still living under their roof, we need to ask ourselves what the longer term implications of these trends are and what this means for the financial well-being of these parents."
A separate report from Halifax shows that many borrowers are concerned about the impact of an interest rate rise on their monthly mortgage repayments.
Around 55 per cent of people with a mortgage in London said they are worried about an increase. However, 66 per cent of those in Wales and 58 per cent in the North East and South West said they are not concerned about the effect of interest rises.
Nationally, one in ten mortgage holders believe they would find it difficult to afford their mortgage repayments if the monthly amount was to increase by any amount at all. Almost one in five (19%) said the tipping point would be an increase of between £25 and £74 a month, although a similar figure estimate that they would have no difficulties with any size of increase.
If their mortgage payment was £100 higher, a third of mortgage holders would have to reduce spending on essential items such as food, energy, and clothing.Reuse content