Thursday, May 14, 2009
Category:
Property
According to Abbey Mortgages, 1.6 million people aged 18 to 34 in the UK are living rent-free with their friends or family.
This level of reliance highlights the extent to which the recession has affected people’s personal finances.
This trend of being dependent on friends or family is not specific to any one social group but is instead applicable across the board. The research even revealed that 300,000 people between 34 and 54 years of age also have the same living arrangement. The total number of people in this situation in the UK stands in excess of 1.9 million. With the average monthly rental payment at £441.78 this means an overall saving of £839 million for those who are living with their friends or family free of charge. For this reason it is unsurprising that the average age of a first time buyer has risen to 29.
It comes as no surprise that it is the areas in which property prices are typically expensive where the greatest number of people are not able to purchase a house themselves. Within London for example, over 270,000 adults are living rent free. People in the South of the country are twice as likely to be living in this way compared to the North East and North West.
Abbey Mortgage Director, Nici Audhlam-Gardiner, commented: "In the current climate many people have little choice but to return home or turn to their friends or family for somewhere to live at no cost. Whilst an adult living at home until their 30s is more associated with our continental cousins, Abbey Mortgages research shows that this is a trend that is on the increase here in the UK as well. This time last year less than half a million people claimed to be living rent free. Today this figure has leapt to almost two million."
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Those first time buyers who have been able to get onto the property ladder and would like to turn their new home into their dream property may wish to consider taking out a
secured loan to fund the work required. One of many finance options available, a secured loan could provide the means to an array of home improvements from redecoration to a new kitchen or bathroom. Those wanting to create extra living space could even use the money to fund a conservatory or extension. Secured loans could be used to fund extensions upwards and downwards too if a loft or basement conversion is appropriate.
