More than 12 million people aged between 18 and 40 have lived with family in order to build a deposit, highlighting the growing affordability pressures facing first-time buyers.
Most young adults in the UK have lived in their family home not for comfort, but because renting while saving for a deposit has become increasingly unaffordable.
Research from lifetime ISA provider OneFamily, based on a survey of 3,000 UK adults, found that three in five people aged 18 to 40 have lived with parents or relatives specifically to save for their first home. This equates to more than 12 million people.
Nearly one in five – around 3.6 million adults – are currently living with family for this reason, as rising rents and wider cost-of-living pressures continue to restrict the ability of would-be buyers to save.
JESSICA & ZAK
Among those who have returned home are charity worker Jessica Keogh, 25, and her partner Zak, 27, who have recently bought a three-bedroom house in Essex. The couple used Lifetime ISAs from OneFamily to help fund their deposit, benefitting from a 25% government bonus on savings of up to £4,000 a year, or £1,000 annually.
After finishing university, Keogh moved back in with her mother for more than three years, while Zak initially lived with friends before later returning to his family home to save.
Keogh said: “We both feel very lucky to have such warm, welcoming parents who would happily have us stay for as long as we needed. We’re both very aware not everyone is in that position, and we don’t take it for granted.
“If I’d stayed renting with friends, I would have been spending around £600 a month. I was then able to put the money I saved by living at home towards my deposit. Without the opportunity to move home, we wouldn’t have been able to buy the house we have or do it in the timeline we managed.
“It’s harder for Gen Z to reach big financial milestones, like owning a home, starting a family, or building a career, especially with the cost-of-living crisis.
“Most people, regardless of age, want to own a home. But I’d say a lot of young people today also value life experiences like travel more than perhaps older generations did. Sometimes we’re seen as lazy or lucky to live at home longer, but for many of us, it’s just not affordable to move out yet.”
As of July 2025, the average UK house price stood at around £270,000, more than seven times the average annual income of approximately £37,600, according to Office for National Statistics data. At the same time, rental costs often consume a significant share of monthly earnings, limiting the scope for regular saving.
Jim Islam, chief executive of OneFamily, said: “What we’re seeing here is that independent young adults are having to return to their family homes, just to be able to save up enough for a deposit.
“For Jessica and Zak, it made smart financial sense to move back in with their families for a while. But for many, this can be a tough call to make and a difficult readjustment.
“Buying a home feels out of reach for a lot of young people right now, but not all hope is lost. There are tools out there and careful planning, saving, and the right financial education and support can help hopeful homebuyers get on the ladder.”
