New research by personal finance comparison website, finder.com, found that of those who have moved home again, over two-thirds expect the move to be more permanent and have no move out date in sight.
The financial implications of the pandemic are far from over as 2 million plan to move back in with their parents soon. This is likely to be due to fears over losing their jobs once the Coronavirus Virus Job Retention scheme is phased out in the coming months.
When it comes to generations, nearly 3 times more of generation Z have moved back in with their parents than millennials (58% vs 20%).
Around 1.9 million of those who have moved out (18%) have continued to pay rent for accommodation they have not been using.
With the average cost of rent being £886 per month and lockdown spanning 3 months, this could have cost young renters £2,658 so far. Overall, this equivalent to a total of £4.9 billion being wasted on rent for accommodation that tenants aren’t using.
However, not all renters who have now moved back in with their parents have carried on paying rent. The second most popular option for people who have moved home was to not renew their tenancy (13%) and a further 12% have managed to cancel their tenancy altogether. Through negotiations with their landlord, 10% have managed to reduce their rent and 7% have opted to take a rent holiday.
Matthew Boyle, mortgage specialist at finder.com, comments: “It’s unsurprising that the COVID-19 pandemic has caused younger generations to move back in with parents but most have continued to pay rent for unused flats, which will no doubt be very frustrating.
“The government has asked for landlords to be understanding towards tenants during these times, so If you fall into this category then try negotiating a reduced rate. For those who don’t intend to return anytime soon, you could also look at subletting your room or perhaps even ending your tenancy. Even if these options aren’t possible, you could compare energy providers and insurance policies to see if any savings could be made - it all adds up.
“On the bright side, you may have saved more than you think by staying at home. Our recent research found that during lockdown Brits have saved £99 per week by not going to work and socialising, now totalling £1,188 after 12 weeks of lockdown.”
