London, UK - The Financial Times has reported that rising housing costs are increasingly delaying financial independence for young adults in the UK. The high cost of housing has pushed the average age of first-time homebuyers to a record high of 34.

According to the FT, a third of 25 to 27-year-olds born between 1997 and 2012 are living with their parents. This is a significant increase from 20 years ago when the figure was just 20%. A recent survey by Virgin Media found that nearly a third of 18 to 35-year-olds rely on their parents for housing costs and utilities.

The average age of first-time homebuyers is now 34, and only 10% of 25-year-olds own their own home. This represents a sharp decline from 24% two decades ago.

The surge in both house prices and rental costs is driving these trends. Rental prices have increased by an average of 9.2% this year, the highest rate since records began in 2015, the FT reported. Rent now accounts for 47% of the income of those under 25.

Molly Broome, an analyst at the Resolution Foundation think tank, warned that the growing economic uncertainty is having a significant negative impact on young people's ability to start families and make long-term plans. The economic pressure is also leading young people to avoid social activities.

A survey by Phoenix Group found that 68% of those born between 1995 and 2005 reported avoiding social activities due to financial constraints. Another survey found that over 25% of young adults are cutting back on spending on non-essentials such as alcohol and cigarettes.

These findings highlight the challenges faced by young people in the UK as they navigate an increasingly expensive housing market. The rising cost of living is delaying their ability to achieve financial independence and is having a significant impact on their overall quality of life.

[Copyright (c) Global Economic Times. All Rights Reserved.]