UK becomes nation of renters as young adults fail to save

YOUNG people in the UK are increasingly relying on their parents to help them onto the property ladder, an industry survey revealed yesterday, as the financial crisis and their own failure to save holds them back.

Half of 20 to 45 year olds think Britain will become a nation of renters within a generation, and 24 per cent of parents have had their children move back home as adults due to the current market, according to research from Halifax.

Although 75 per cent of non-owners do want to buy a house, just 14 per cent are actively saving towards a deposit and 80 per cent admit to spending money which they could be putting towards a house.

Parental support does not stop when children fly the nest – 26 per cent of parents contributed to a deposit and 19 per cent expect to in the future, while six per cent contribute to monthly mortgage payments.

Such increasing reliance on the “bank of mum and dad” has left a third of parents concerned for their own financial future.

“Parents think that their kids could make cutbacks on holidays and going out in order to save for a deposit,” said Halifax.