Children who move back home to save money cost their parents over £1,600 during their stay, which is 83% more than this time last year, according to the latest ‘Hotel of Mum and Dad’ report from MoneySuperMarket.
The ‘Hotel of Mum and Dad’ is bigger than the world’s largest hotel chain, with 4.5m occupied rooms every night in the UK, and a quarter of the nation’s millennials and young professionals now moving back home to save money for that all-important flat or house deposit. To highlight the issue, MoneySuperMarket spoke to parents who have adult children living at home, as well as adult children who have moved back home, to compare attitudes towards rent, living costs and length of stay.
The findings show that returning children are staying with their parents for longer, up from 9.7 months in 2018 to 10.3 months in 2019, enabling them to save £6,829 overall. While the average rent contribution is £212, nearly half of children (48%) don’t offer to pay anything during their stay. Popular reasons cited for moving back in with parents include the rising cost of living (26%) and Brexit (11%).
The cost of housing and catering for a returning child is increasingly having an impact on parents’ finances, with over twice as many parents cutting back on lifestyle choices. 44% admit to limiting holidays, weekends away and luxuries to be able to accommodate their children, compared to 19% in 2018. Parents are also spending more to update their homes before children return, up from £1,743 to £1,886. Re-decorating a bedroom (15%), buying new furniture (10%) and upgrading the wi-fi (6%) are some of the most common changes made.
The growing ‘Hotel of Mum and Dad’ economy has also become more comfortable since 2018, with children receiving additional services as part of their stay. Returning children are now more likely to have their sheets washed (59% vs. 46%), breakfast made for them (35% vs 25%) and their washing up done (55% vs 48%). ‘Kidults’ are also more likely to take advantage of subscriptions such as Netflix (32% vs 29%) and Spotify (10% vs 6%).
Top services provided at the ‘Hotel of Mum and Dad’:
- Cooking meals (65%)
- Laundry (62%)
- Washing (59%)
- Food shopping (56%)
- Washing up after meals (55%)
- Ironing (44%)
- Giving lifts (43%)
- Morning breakfast/cupof tea (35%)
- Making bedand tidying up (35%)
- Free toiletries (31%)
Emma Craig, money spokesperson at MoneySuperMarket said, “With house purchases flatlining since the June 2016 Brexit vote, from a yearly rate of 8.2% to just 0.9% in June 2019, it’s perhaps not surprising that children are staying longer at the ‘Hotel of Mum and Dad’.
“And with kids at home for longer, it’s natural parents are feeling the pinch even more. While our report shows they’re clearly happy to help out financially, it’s important to work out what those extra costs are upfront in order to ensure harmony at home. Both generations can then be transparent about any contributions being made to the household budget, so that no one receives an unexpected bill on moving out day.”
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