Wednesday, 27 June 2012 10:22 AM
The state of the housing market is a key reason why parents are facing an average bill of £47,000 for each of their adult children.
A survey by LV= reveals that parents don’t expect their “chadults” to become financially independent until they are 38 years old. This is currently the average age of a first-time buyer in the UK and it is expected to rise to 41 by 2025.
The friendly society says 4.4 million grown-up kids in the UK are receiving financial support from their parents and that each of them will cost an average of £47,324 after the age of 21.
The 1.6 million chadults still living at home cost their parents even more, an average of £55,447. Of these, 58 per cent are in their 20s, 29 per cent in their 30s and 12 per cent over 40.
More than a third of parents with children still living at home say they have not been able to get on the property ladder and do not want to rent. Other reasons are not being able to find a suitable job (18 per cent), a relationship breaking up (12 per cent) and falling into debt (10 per cent).
For chadults in general, parents are chipping in with an average of £2,103 a year towards basic living costs including bills and rent plus another £9,476 over their lifetime on big ticket items like helping them on to the housing ladder, a wedding and holidays.
Some 42 per cent of parents say they are struggling financially as a result but are happy to help while 12 per cent are unhappy about it but feel they do not have any choice.
Mark Jones, head of protection at LV=, said: "Bringing up a child is expensive and for millions the cost doesn't stop there. Young people are leaving university with large debts, youth unemployment is at a record high and property is unaffordable for many. So it is likely we will see a growing number of adults who continue to depend on their parents financially.”
- housing crisis