More than half of parents who charge their adult children rent are returning some or all of the money to help them save for a first home deposit, according to research from Nationwide.
The findings, drawn from a poll of more than 2,000 UK parents with adult children living at home and paying rent, point to an informal but increasingly common savings mechanism taking shape inside family homes.
Just over a third (34%) of adult children are living at home specifically to build a deposit for a future house purchase, while 82% of parents say rising housing costs make it more likely their children will remain under the family roof for longer.
What parents are charging
Surveyed parents charge an average of £303 a month, equivalent to more than £3,600 a year. The figure varies sharply by region: parents in Greater London charge an average of £415 a month (£4,980 a year), compared with £187 a month (£2,244 a year) in Yorkshire and The Humber and £211 a month (£2,532 a year) in the East Midlands.
More than six in ten parents (61%) have increased the rent they charge, with three quarters (75%) of Greater London parents having done so, against fewer than half (46%) in Yorkshire and The Humber.
The 'Mumlord' and 'Dadlord' dynamic
Nearly half of parents (45%) say they feel like a landlord to their own child, a shift that reflects how extended periods of co-habitation are reshaping the parent-child relationship. Four in ten (40%) say their adult child remains at home because they cannot yet afford to move out.
Many parents are absorbing some of the financial pressure. More than two in five (45%) have waived rent payments at least once in the past year, while more than half (52%) have let children off payments between two and six times over the same period.
One in five parents (21%) have a formal arrangement in place, with a further 14% saying they would consider one. Greater London parents are most likely to have formalised the arrangement (47%), compared with just 5% in Yorkshire and The Humber and 6% in the East Midlands.
These arrangements are not always straightforward. Half of parents say they have caused tension or disagreements, rising to 70% in Greater London households and dropping to 27% in Yorkshire and The Humber.
"Behind many first-time buyer success stories are parents quietly helping along the way, and it appears they are using new tactics to support their children," said Carlo Pileggi, head of mortgage products at Nationwide.
"As saving for a home remains as challenging as ever, our research shows many of Britain's parents are using rent payments as a way to help their children build a deposit, turning the family home and time spent living at home into a stepping stone towards homeownership.
"However, the findings also serve as a reminder that many aspiring first-time buyers do not have access to family support and continue to face significant challenges in saving for a deposit.
Ian Harris, president of NAEA Propertymark, comments, "Parents are increasingly finding themselves wearing two hats: supporting their children while also taking on many of the responsibilities of being a landlord. With almost half saying they feel like a landlord to their own child, rising housing costs are clearly changing the dynamics of some family homes.
"Where an adult child is paying rent, even informal family arrangements can become complicated. Being clear about rent, bills, responsibilities and what happens when circumstances change can help avoid misunderstandings and financial tensions. With half of parents saying these arrangements have caused disagreements, a clear agreement can be valuable even within families.
"From an estate agency perspective, the impact of this affordability pressure is ultimately visible when people are ready to make their first move onto the housing ladder. Buyers are often having to plan for longer, save more and consider different routes to getting a deposit together, while family support can make the difference between being able to proceed and having to wait.
"The rise of the 'Mumlord and Dadlord' therefore reflects more than a change in family life. It highlights how the journey from living at home to becoming a first-time buyer is taking longer and becoming more financially complex for some people."
