"Whilst calculating a fair price to cover rent and bills might seem straightforward, there are so many day-to-day costs that add up to more than we might expect."
Its data shows that the ‘Hotel of Mum and Dad’ has 4.5 million occupied rooms every night in the UK, with a quarter of the nation’s millennials and young professionals now moving back home to save money for a flat or house deposit.
On average, just 38% of adult children pay rent to their parents and those that do contribute just £6 per night, but parents could earn £15,000 a year if they rented their spare room on Airbnb.
The research also found that the number of adult children who have moved back in with their parents has grown 8% more than the population of London within the last 20 years.
On average, adult children are moving home to their parents for just under a year - six months longer than parents would like, and three months longer than was agreed.
The estimated monthly cost of ‘little extras’ (e.g laundry, food shopping, toiletries) equates to over £1,000 per year and for one in 20 parents, they cost up to £300 every month. Moreover, increased gas, electricity and water bills and home insurance premiums add another £182.64 each year.
Most adult children move home to save for their own place, but a quarter simply can’t afford rent, while splitting from a partner (21%) or losing a job (7%) forces many others home as they struggle to stay afloat financially.
MoneySuperMarket spokesperson, Caoimhe Keogan, commented: “It’s never easy to have a conversation with your kids about paying their way if they move back home. Whilst calculating a fair price to cover rent and bills might seem straightforward, there are so many day-to-day costs that add up to more than we might expect.
"Parents are clearly happy to help out and many enjoy being able to spend quality time together, but in the interests of smooth sailing while living under one roof, it’s important to work out what those extra costs are up front. Both generations can then decide together what, if any, contribution adult children will make to the household budget, so that no one receives an unexpected bill on moving out day.”
