Two in five (40%) renters are considering moving back in with their parents in order to boost their first-time buyer savings, Skipton Building Society has revealed.

In a poll of 2,000 renters with the ambition to buy a home, 52% said they consider moving back into a family home as a move backwards, while 91% said it would be a short-term sacrifice for a long-term gain.

With rising rents and the cost of living, the tenants polled said they are only able to save £187 a month on average towards their first house deposits, but if they were able to move back home, they could put as much as £808 away monthly.

A further 22% estimated that if they were to make a move, they would have saved enough within a year for a house deposit.

Skipton's data comes as the Office for National Statistics (ONS) revealed that within England, average private rental prices increased by 6.1% in the 12 months to January 2024, while prices also jumped by 7% and 6.8% in Wales and Scotland in the same period respectively.

However, the option of moving back home is not possible for many, with 22% saying they would not be able to move back to their family home.

Reasons include there being no space (33%), living too far away from work (27%) and those who admit they would not be able to give up their independence (37%).

Head of mortgage products and proposition at Skipton Building Society, Jennifer Lloyd, said: "People trapped renting is one of the biggest housing challenges we face across the country, which is having a massive impact on the fabric of our society.

"With escalating rents and the cost of living squeeze further impacting people’s ability to save for a house deposit – it’s making it almost impossible for people get onto the property ladder so it’s no wonder we are seeing a rise in the number of tenants considering a move back home.

"For those fortunate and willing to make this move, then it might be a vital first step in helping them to boost their savings. However, as the research reveals, we know for many tenants, this isn’t option for them."

The study also revealed that more than a fifth (22%) of those who would consider going to live with their parents see it as an opportunity to pick up financial advice from there.

A further 20% believe it would reduce their commuting costs, while 36% think they’d be able to pay off debt more quickly.

However, Skipton has warned that moving back home will not solve many of the problems facing the housing market in the UK.

Lloyd added: "We know there isn’t one quick solution to addressing this huge societal challenge of tenants being trapped in renting cycles, with rents escalating faster than mortgage payments and the increasing costs of living but doing nothing isn’t going to solve this UK housing issue."

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