More than half of UK parents who charge their adult children rent while they live at home use some or all of that money to help their children save for a house deposit, according to a recent survey by Nationwide Building Society. The research, which involved over 2,000 parents, found that the average monthly rent charged was approximately £300, or about £3,630 annually.

The amount parents request varies considerably by region, with those in Greater London charging an average of £415 per month, while parents in the East Midlands and Yorkshire and the Humber ask for significantly less—around £211 and £187 respectively. This difference reflects wider regional disparities in housing costs.

Data from the Office for National Statistics shows that a notable proportion of young adults aged 20 to 34 are living with their parents, with one in three men and one in five women in this age group residing at home—figures that are at record highs. Analysts attribute this trend largely to challenges posed by rising rent and house prices, which make independent living and homeownership increasingly difficult for younger generations.

About 54% of parents who charge rent reported returning some or all of the payments to their adult children to support their efforts to save for a deposit. More than 40% of these parents indicated they had waived rent payments at least once in the past year, while over half had done so multiple times. This suggests a flexible approach to financial support within families, blending rent collection with assistance in building homeownership capital.

Mortgage industry experts emphasize the role parents are playing in helping younger adults enter the housing market. Carlo Pileggi, head of mortgage products at Nationwide, remarked that many first-time buyer successes are underpinned by quiet parental support often structured through these rent arrangements. He noted that parents increasingly use rent payments as a mechanism to facilitate savings for deposits, effectively turning the family home into a stepping stone toward homeownership.

Estate agent experts also recognize a wider impact of this dynamic on the housing market. Lucian Cook, head of residential research at Savills, pointed out that while many parents aim to offer accommodation to adult children, they often expect those children to assume some financial responsibility rather than providing it entirely free of charge. He also highlighted that some parents remain reluctant to downsize their homes after their children reach adulthood, thus maintaining space for them to live and further influencing housing availability.

The trend of adult children living at home while saving for property suggests evolving family strategies in response to the challenges of the current UK housing market, reflecting a blend of financial pragmatism and familial support.