More than a fifth of aspiring first-time buyers have moved in with family or friends since the coronavirus crisis started, according to research published this morning.
Some 22 per cent of people hoping to buy their first home in the next two years have moved in with parents, in-laws or friends since March 2020, Halifax found. On average, they plan to live with their family or friends for about seven months.
With many people having faced pay cuts, been furloughed or become unemployed during the pandemic, moving back into their childhood bedrooms is one way that people can significantly reduce their outgoings.
The findings were released in the same week that several major lenders, including Halifax, launched a 5 per cent deposit mortgages under a new government scheme.
Sooner than expected
Halifax found 21 per cent of those surveyed have a 5 per cent deposit saved already and 61 per cent said they will now be able to buy a home sooner than expected because of the scheme.
Six in 10 , about 60 per cent, would-be home buyers said Covid-19 had changed their long-term plans for where to live, with value for money and living in a more rural area being among their top priorities.
“Moving in with friends and family is helping aspiring first-time buyers to boost their savings as raising a deposit is still the biggest barrier to the property ladder,” explained Andrew Asaam, mortgages director at Halifax.
“The average first home deposit increased by £12,000 to £58,986 in the past year despite a market shutdown at the start of the pandemic, putting a further squeeze on those getting close enough to take that first step,” Asaam added.
More than 1,000 people planning to buy their first home in the next two years were surveyed for the research, conducted last month.