A quarter of 20-34-year olds are still living with their parents due to spiralling rental costs and house prices, which are the major obstacles for leaving the family home. According to the ONS there were under 3.4m adults in this age category living with parents. This number has surged by 24% for the past decade from 2.7m in 2008. The main reason related to this is due to rising rents and growth in house prices. Another contributing factor is further education and leaving it longer to settle down with partners and have children due to being career focused.
There has been an evident increase in the number of people living alone than ever before. Cohabiting couples is the fastest growing family type as people choose to live together before getting married. The main issue is rents have soared over the years especially in major cities. Young people with high paid jobs and access to bank of Mum and Dad have a greater chance of owning a home.
This presents an opportunity for the use of Bridging Finance and Buy-to-let mortgages. HMO’s could obtain higher yields and offer lower rents for those who need to fly the nest. To conclude Bridging Finance could assist with renovating properties situated at the lower end of the market which could be resold targeting First time buyers.