Nearly a quarter of young renters have considered moving back to their parents because the cost of living is so high.
A survey by Compare the Market also found that a whopping 29% of 21 to 34-year-olds were struggling to pay their rent specifically, with three-quarters finding their housing costs ‘challenging’.
Yet 23% had actually considered returning to their parental home as prices continued to rise.
The research also shows that more than a fifth of people in this age group already live in their family home, 33% have a private rental home and 27% have a home with a mortgage. One in ten owns real estate.
And while many live in their family home because they can’t afford the rent, just over a third do so even though they saving for their first house.
Helen Phipps, director of Compare the Market, gave advice to renters facing high living costs.
“We want to encourage people who are struggling to look for ways to save where possible and ensure they are not paying more than they need to for everyday expenses,” she said.
“People could start by taking note of what’s coming in and going out so they don’t allow expenses like insurance and utilities to renew automatically, and ensure they don’t drift into variable or ‘standard’ credit card rates.
“Comparing costs online through a price comparison website can also be helpful.”
She added advice for families welcoming new residents back into their homes.
“It is important that you let things go home insurance provider knows,” she added. “Your insurer needs to know how many people live in your home as this could affect how much you pay.
“If your home insurance premium increases significantly, you can save by switching providers. Homeowners can save up to £211 on their home insurance through Compare the Market.”