14 Apr

Rent-free adult living high, says survey

Rent-free adult living high, says survey

A growing number of 18 to 34-year-olds are living rent-free with friends and family while they save for a deposit to buy a house, new research has indicated.

The study by Abbey revealed that 1.6 million people in this age group are residing in this way, with 300,000 35 to 54-year-olds in the same situation.

Abbey noted that such residents are collectively saving £839 million in rent per month and that such living arrangements are more common in parts of the country with higher house prices, such as the south of England.

Commenting on this, head of mortgages at Abbey Nici Audhlam-Gardiner stated: "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."

However, she suggested, this trend could change as it is becoming easier for people to get on the housing ladder again as mortgages with larger loan-to-value (LTV) levels - such as Abbey's recently-launched 85 per cent LTV product - are being introduced.

Last week HSBC announced the launch of three 90 per cent LTV products.

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