The Hotel of Mum and Dad is costing parents dear
Parents whose grown up children move back home are footing a bill 83 per cent higher than last year, according to MoneySupermarket.
The price comparison site’s “Hotel of Mum and Dad” report found that a quarter of the nation’s millennials and young professionals now move back home to save money for a house deposit.
MoneySupermarket spoke to parents who have adult children living at home, as well as adult children who have moved back home, to compare attitudes towards rent, living costs and length of stay.
It found that returning children typically stay at the Hotel of Mum and Dad for 10.3 months in 2019, up from 9.7 months in 2018. This allows them to save an average of £6,829, but typically costs their parents £1,640.
While the average rent contribution is £212, nearly half of children (48 per cent) don’t offer to pay anything during their stay. Popular reasons cited for moving back in with parents include the rising cost of living (26 per cent) and Brexit (11 per cent).
Impact on parents’ finances
The cost of housing and catering for a returning child is increasingly having an impact on parents’ finances, with more than twice as many parents cutting back on lifestyle choices than last year.
Four in 10 (44 per cent) admitted to limiting holidays, weekends away and luxuries to be able to accommodate their children, compared to 19 per cent in 2018.
Parents are also spending more to update their homes before children return – up from £1,743 to £1,886. Re-decorating a bedroom (15 per cent), buying new furniture (10 per cent) and upgrading the wi-fi (6 per cent) are some of the most common changes made.
A stay at the Hotel of Mum and Dad has also become more comfortable since 2018, with children receiving additional services.
Returning children are now more likely to have their sheets washed (59 per cent in 2019 vs 46 per cent in 2018), breakfast made for them (35 per cent vs 25 per cent) and their washing up done (55 per cent vs 48 per cent).
Grown up children are also more likely to take advantage of their parents’ subscription services such as Netflix (32 per cent in 2019 vs 29 per cent in 2018) and Spotify (10 per cent vs 6 per cent).
Emma Craig, money spokesperson at MoneySuperMarket, said: “With house purchases flat-lining since the June 2016 Brexit vote – from a yearly rate of 8.2 per cent to just 0.9 per cent in June 2019 – it’s perhaps not surprising that children are staying longer at the ‘Hotel of Mum and Dad’.
“And with kids at home for longer, it’s natural parents are feeling the pinch even more. While our report shows they’re clearly happy to help out financially, it’s important to work out what those extra costs are upfront in order to ensure harmony at home. Both generations can then be transparent about any contributions being made to the household budget, so that no one receives an unexpected bill on moving out day.”