A million more young people might be forced to share a house with their parents over the next ten years to save money for a deposit to buy their own home.
Nearly 4 million people between the age of 21 and 34 will be living at home by 2025, up from 2.8 million in 2015, according to a study by Aviva, an insurance company.
The number of households containing two or more families, such as a married couple living with their elderly parents, is also set to rise to 2.2 million up from 1.5 million last year.
Aviva said rising house prices are making it harder for young people to get on the property ladder. Property prices rose by 52 per cent in 10 years, from £184,000 in 2005 to £279,000 last year, according to the latest ONS House Price Index.
The so-called bank of mum and dad will finance 25 per cent of all mortgages in the UK in 2016, making parents as important as one of the UK's top 10 lenders, another research from Legal & General and financial services group Cebr has recently shown.
Parents will lend over £5 billion this year, providing deposits for over 300,000 mortgages and purchasing homes worth £77 billion.
Lindsey Rix, managing director of personal lines at Aviva UK said the prospect of moving back with its parents can be difficult to deal with for youngsters but not every aspect of it is seen as negative.
About 42 per cent of adults said living in a multigenerational household would be a positive arrangement, rising to 66 per cent of those already living this way – suggesting there is a gap between people’s perception of multigenerational living and the reality.
"Multigenerational living is often seen as a necessity rather than a choice, particularly when adults are forced to move back in with family to help save for long-term goals like buying their own house," Rix said.
"But rather than being an inconvenience, our report shows it is often a positive experience, with shared living costs reducing financial strain and the added benefit of constant company, " she added.
Advantages included having other people around for company and to share household chores with as well as cheaper living costs.
When asked by Aviva about what might prompt them to stay living with their parents or move back in with them for six months or more 71 per cent of youngster said they were caring for an unwell relative. But as much as 57 per cent said they were saving for a house deposit.
