Last Updated: 24/07/2016
Nationwide Building Society have warned parents about the pitfall of supporting adult children, and not saving enough money for themselves during their old age.
Andrew Baddeley-Chappell, head of policy, mortgages and savings, said: ‘For parents, a delayed offspring departure often incurs unforeseen and prolonged costs and expenses, since our research shows a surprising number of adults who, while continuing to live at home, do not contribute towards bills or even save any money to be able to enable them to move out.
“The ‘Hotel of Mum and Dad’ is often staying open for longer than many anticipated as rental costs and deposits or the need to save for a mortgage deposit mean that some children understandably have to wait before flying the nest.
“For some, moving out may never be an option, but it seems the more financially comfortable the living situation, the less incentive there is for children to move out.
“Parents looking forward to becoming empty nesters have to rely on the hope that their children are putting away enough savings to move out of their own accord.'
“But a normal hotel wouldn’t let someone stay free of charge, so why should the ‘Hotel of Mum and Dad’?
However some adult children are taking advantage of this time to save up to buy their own home, with more than 36% taking out a mortgage when they left the family home, with two in five choosing a privately rented home and 7% renting social housing.
If you are living at home and would like to save up to buy your first home then check out our guide:
• Create a budget and stick to it – write a list of all your expenses and allowances for the month, be realistic, and then pay the rest of the money you don’t need into a savings account.
• Make an appointment with a financial advisor to see how much deposit you will need to buy your first property.
• Draw up a list of requirements that your property must have – although all of these have to be a bit flexible.
• Use a good Estate agent – such as Hawes and Co who will have their finger on the pulse when it comes to the local market.
If you are looking at buying your first property why not pop into one of our local Hawes and Co branches for a coffee and chat or call our team on 0208 946100.
Source: Express: http://www.express.co.uk/news/uk/643241/One-in-FIVE-living-parents-until-at-least-26-hotel-mum-dad