‘PARENT LANDLORDS’ COUNT THE COST OF OPENING THEIR DOORS TO ADULT KIDS

New research reveals the growing ‘Parent Landlord’ phenomenon in the UK, where many parents are stepping in to provide their adult children with a place to live. While their generosity offers a vital sanctuary in an increasingly challenging property market, it also comes at a cost. These parents are not only offering shelter but shouldering significant financial burdens, introducing new responsibilities and adding strain to family dynamics.

The survey, commissioned by Latimer, the development arm of Clarion Housing Group, has found that the majority (53%) of UK parents will happily accommodate their grown-up children, with almost a quarter (23%) willing to provide accommodation for as long as needed. At a time when inflation, rising rents and stagnant wages are putting a squeeze on first-time buyers’ ability to save for a deposit, this can provide a lifeline to young people in their quest to get on the property ladder.

However, life can be challenging with adult children around and Latimer’s research revealed that Parent Landlords’ would appreciate more consideration around the home
Many parents are willing to welcome their adult children back at least for short periods, 47% believe their offspring should really have flown the nest by the age of 25.

Latimer used the research to understand the some of the difficulties Parent Landlords are facing. The average amount that respondents felt was appropriate was just over £100 per week, although 1 in 5 (22%) were happy to let their adult children stay for free. The study also underlines the financial pressures of homeownership for both parents and their aspiring first-time buyer children. Two thirds of parents (66%) state they would like to help their adult kids financially with buying their first home but can’t afford to, yet more than half (54%) of parents believe their child won’t get on the ladder without their financial support. In separate research with LadBible at the end of 2024, 48% of 18-30 year olds thought they would never be able to own their own home. This is a disappointing statistic and Latimer is determined to do their bit to change, by demonstrating the opportunity of Shared Ownership as a first step on the ladder.

TV presenter, home expert and parent herself, Amanda Lamb commented: “Staying at home longer or moving back in with parents can be a fantastic way for young people to save up for their first home, and it will come as a welcome relief to many that most parents are happy to accommodate. But the results of the survey are very clear; adult children returning to the family nest must recognise the social and financial strain this can cause their Parent Landlords. Be courteous and respect boundaries, and help with a bit of rent if you can.”

In terms of finding a solution, an overwhelming 84% of parents were of the view that financial planning should be part of the curriculum to help children plan better, and 61% felt children should be encouraged to start saving up earlier in life. In terms of the property market, shared ownership emerged as a highly popular solution with 61% of parents agreeing it should be more widely available.

Above: An example of a shared ownership development by Latimer – Alta at Consort Place in Canary Wharf

Shared Ownership is available across the country by Latimer Homes – including London. It is designed to help individuals, particularly first-time buyers, afford a home. It allows buyers to purchase a share of a property, typically between 25% and 75%, while paying an affordable rent on the remaining share which is owned by Latimer. As incomes grow, the shared owner could staircase upwards until they own the full value of their home or sell their share.

23 year old John McGliney took his first step onto the property ladder two years ago with shared ownership. A trainee accountant based in The City of London, John had managed to save some money whilst still living at home and combined with a financial contribution from his parents, he bought a 35% share of a studio apartment at Crescent Gardens in Croydon. He explains: “Initially, I thought I’d rent somewhere closer to the centre of London. However, I was lucky enough to be able to get a deposit together and didn’t want to get stuck in the rental cycle. My friends still can’t believe I’ve bought my first place. Most of them are still living with parents because they don’t want to get stuck in a renting cycle. They’re trying to save money, hoping they can do something similar in a few years’ time. ”

Above: John McGliney, who received a financial contribution from his parents to get on the property ladder with shared ownership aged just 21

Paul Walker, Sales and Marketing Director at Latimer, commented: “Young adults face many challenges in today’s housing market and are increasingly forced to turn to their parents for accommodation support. However, the Parent Landlord phenomenon is a temporary fix not a workable solution, and our study has highlighted the strain that adult children living at home can put on family life. With lower deposits required to secure a first home, shared ownership offers a way out, providing first-time buyers with a means of taking that crucial first step onto the property ladder, and at Latimer we are committed to expanding access to shared ownership.”