It seems that the majority of young people would prefer to stay at home instead of flying the nest. New research from leading information services company Experian suggests that despite major increases in the number of young people living at home, the majority of this group appear quite happy to do so, with 61% saying they were quite or very content with living at home and a mere 4% claiming to be very unhappy with their lot.
Accordingly, 25% have no immediate plans to leave home, while 29% have ambitions to fly the nest in the coming year with a similar number (31%) hoping to leave home within the next two to three years.
Perhaps unsurprisingly, a third of survey respondents cite the high cost of rent as the most common reason for living at home; however, over a fifth are planning for their future and living at home to save for a mortgage (22%). 17% are living at home as they are still in full-time education.
For those young adults who have already flown the nest, freedom and independence was overwhelmingly the biggest reason for leaving the parental home, as 42% of young adults report. Other influential factors included moving in with a partner (17%), being in full-time employment and financially stable (11%) and moving away to study (9%).
Commenting on the research, Peter Turner, MD, Experian Consumer Services UK&I, said: “The research paints a true picture of the reality faced by the 3 million young adults living with their parents in the UK[2] today. Whether you are happy to stay put for the time being, saving for a mortgage, or hoping to move out into rented accommodation in the near future, it’s important to start planning for your financial future. This means not only saving your money, but also building a good credit rating so that if you do need a helping hand in the future, your credit report will paint the best picture possible of your financial situation when you apply for credit.
For young people still living at home, now is the time to start building a healthy credit score so that you can use it to help you on the next step of your journey when the time is right.”
* HAPPY AT HOME: Even if you have always managed your money well and maybe even have lots of savings, if you do not have a history of repaying credit, this will mean that lenders won’t have any evidence that shows you are credit-worthy in the future. Therefore, now is the time to start building your credit score. Ensure your mobile phone contact is in your name, sign on to the electoral role at your parents address and you can begin to build positive information on your credit report which will stand to you in the future.
* HOUSE HUNTER: If you’re living at home and saving for a mortgage, try to appear like an ideal mortgage borrower for the period in advance of your application. Show you can make it through several months with a slight surplus. Don’t take out additional borrowing and try to demonstrate you can comfortably manage any outstanding credit commitments you have.
* RENT SEEKER: When moving into a rented properly, remember that many landlords will complete a credit check on you as part of the process. A less-than-perfect credit history or no information at all may impact on how reliable and trustworthy a landlord perceives you to be, which could impact upon your chances of landing your own place. Check your credit report is up to date and accurate at www.experian.co.uk<http://www.experian.co.uk>, and take the time now to improve your credit score by getting as much help as you can from the experts.
