Flatshare website SpareRoom says over a fifth of 18 to 24 years olds have moved back in with their parents to save cash during the pandemic - and one in nine people aged 25 to 40 have done the same thing.
Its research reveals more than 27 per cent of people aged 18 to 40 have been forced to borrow money as a direct result of Covid-19 and for almost two thirds of these it’s the first time as adults that they have ever had to do this.
On average, they borrowed £1,479.57 with a younger subset - the so-called Millennials - borrowing an average £1,836.05.
Many young people have needed to borrow money as a result of unemployment, pay cuts or furlough. SpareRoom’s research shows that 43 per cent of 18 to 24 year olds and 30 per cent of 25 to 40 year olds are currently unemployed or have seen their income reduced.
And the top three things which adults up to 40 years of age borrowed for were Bills, Food and Rent in that order.
Parents were the biggest lenders over the past 12 months, with nearly half of those 18 to 40 year olds who borrowed money due to the pandemic having done so from Mum or Dad. Nevertheless, the pressures of the past 12 months have taken their toll on some families, with a quarter of the 18 to 40s admitting their parents are less likely to be able to help them out financially now than they were before the pandemic.
The platform’s report also claims widespread growth in money-related anxiety or stress.
Matt Hutchinson, SpareRoom director, comments: “Much has been made of the historic amount of government borrowing and how long it’ll take to get the economy back to ‘pre-pandemic levels’. But less has been said about how the pandemic is affecting individuals and what the financial hangover for the younger generations will feel like.
“It’s particularly saddening to discover that so many young people have had to borrow money to access private mental health and counselling services, that were already struggling to cope with demand before the pandemic hit.”