Parents forced by ‘boomerang kids’ to upsize

Retirement on hold as children return

IT is the time of life when people usually ease into retirement and sell the family home for something more manageable.

But instead of downsizing, growing numbers of baby boomers are having to buy larger homes – to accommodate children who cannot get on the housing ladder.

A new generation of ‘boomerang kids’ – who return to their parents’ home following university or after living independently for a period – means almost a quarter of older Scots adults are searching for somewhere bigger to live, a study reveals.

There has been a 15 per cent rise in the number of households in Scotland with two or more adults – from 884,000 in 2000 to 1,021,000 in 2014, according to the latest figures available from National Registers of Scotland.

Death, divorce and retirement were once the main reasons for Scots moving house, but a decade-long study by the ESRC Centre for Population Change found older parents are being forced to change their priorities.

Research co-author Dr Francesca Fiori, a statistician based at St Andrews University, said: ‘The prolonged presence of adult children in their parental homes – and their sometimes serial returns – poses new challenges for intergenerational relationships in the consumption and redistribution of housing wealth.’

This growing phenomenon may also hinder families wishing to move up the housing ladder.

The study states: ‘Our findings raise concerns over the interdependencies between younger and older generations in the housing market.’

The research was based on data in the Scottish Longitudinal Study from 2001 to 2011, which looked at the behaviour of more than 250,000 people.

It found those aged between 55 and 69 had enjoyed an unprecedented lifestyle, with almost three-quarters owning their own home. But 23.6 per cent still had children living in the household.

The report noted that 52 per cent of older adults followed the traditional route of downsizing, usually after divorce, the death of a spouse, retirement or a risk of deteriorating health.

But 21 per cent bought a similar-sized home in a different area – and 25.8 per cent moved into a bigger home.

The research states: ‘The presence, or absence, of children in the household is a major driver of housing adjustments.

‘Those still living with their children are less likely to downsize and more likely to upsize.’

It adds: ‘A wealth effect arising from the payment of a lump sum following retirement or bereavement might induce households to purchase a larger home, either to improve their quality of life or as an investment which can be released later.’

The research, in the Ageing & Society journal, says that letting children live at home longer helps them build up a better deposit for their own home later.

The study also backs up figures from housing charity Shelter, which claims a quarter of working adults aged 20-34 in Britain live with their parents because they cannot afford the £150,000plus needed for a first home.

‘Improve their quality of life’