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  • Writer's pictureTom from Harken Financial

Rising costs mean a fifth of adult children are considering moving back home. Could it affect you?

The “boomerang” trend isn’t new, but the soaring cost of living means that far more adult children that have been living independently are considering moving back to their childhood homes. As a parent, it’s natural to want to lend a helping hand, but you may also have concerns about what it would mean for you financially.

In the 12 months to October 2022, the rate of inflation was 11.1%. It’s a rate that’s much higher than the Bank of England’s (BoE) 2% target. For many families, rising costs have placed pressure on household budgets.

In response to high inflation, the BoE has increased its base interest rate. This has led to the cost of borrowing, from mortgages to loans, rising. This has further increased essential outgoings for some households.

There’s also speculation that the UK could fall into a recession due to economic uncertainty. So, it’s natural that many people are worried about money and financial security. Some young adults, who are often more vulnerable to financial shocks, are considering moving in with family as a result.

9% of young adults have already discussed moving home with their parents

According to Aviva, 1 in 5 adult children that have been living independently are considering moving in with their parents to cope with the rising cost of living. 9% have already discussed the possibility with their parents.

Parents are also expecting their adult children to broach the topic. 3 in 10 parents say their child has shown an interest in moving home even if they haven’t spoken about it yet.

The boomerang trend of young adults leaving their childhood home only to return later in life has been growing. According to the Office for National Statistics, 4.8 million people aged between 18 and 34 live with their parents in the UK.

59% of adults that live with their parents have moved out at least once. A fifth of the people in this group has done this more than once.

One of the main reasons is soaring property prices. Aspiring homeowners have faced challenges in saving a deposit to buy a home while paying rent. Many have returned home for a period to build up the savings they need.

As the cost of living rises, it’s likely to push more young adults to move home.

As a parent, it’s natural that you want to provide support to your children. But it’s also important to consider how it could affect your own finances.

3 practical things to do if your child moves back home

1. Calculate how it will affect your expenses

Another adult in the house could mean your expenses increase. From buying more groceries to higher energy bills, if your child is moving home, you should consider how it’ll affect your regular outgoings.

Whether you want your child to contribute to the household budget or not, understanding how your expenses could change is important.

2. Set out if you want your child to contribute to the household budget

Being clear from the outset whether you want your child to contribute to expenses can help make sure you’re all on the same page. It means both parties can create a realistic budget.

More than half of parents say their child pays rent for their bed and board, while a quarter contributes in other ways. On average, adult children pay £197 a month, according to parents.

Due to the cost of living crisis, 12% of parents have asked their children to pay more, and 35% are considering doing so. Make sure you consider how your expenses have increased and how they may change in the future.

3. Consider how you could improve your child’s long-term financial security

Your child moving home is a good opportunity for them to improve their long-term financial security. Having a conversation with them about their plans and goals could help them stay on track and identify how you may be able to help.

Around 40% of adults living at home are doing so to buy their own property. Working with your child to create a realistic plan for saving a deposit and helping them understand what they’ll need to consider could help them reach their goal.

There may be other steps that could make sense for your family too. For instance, could providing gifts during your lifetime, rather than leaving an inheritance, help your children improve their financial security? Weighing up your options, as well as considering how they could affect your plans now and in the future, is important.

Make supporting your children part of your financial plan

By making supporting your adult children, whether through providing gifts, them moving home, or supporting their education, part of your financial plan, you can balance it with other goals that you may have. Please contact us to talk about your priorities and financial plan.

Please note: This blog is for general information only and does not constitute advice. The information is aimed at retail clients only.

Not all mortgage contracts are regulated by the Financial Conduct Authority. Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


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