Ninety-eight per cent of adults living with their parents cannot afford to buy the average first-time buyer home in their area based on their own income, Skipton Group research has found.

The group’s Home Affordability Index Report revealed that 97% of adults living with their parents would remain priced out of buying their first property, even if the need for a deposit was removed.

This is because over nine in 10 would face housing costs that exceed 45% of income, which Skipton Group said was "above unsustainable affordability threshold".

Around five million adults are still living at home with their parents, which the group said outlines the "systematic affordability crisis" across Britain.

The report revealed that in every region of the UK, less than 10% of adults living with their parents can afford the average first-time buyer home. In London, the East of England and the South West, affordability drops below 1.5%.

Skipton Group said its research, created in partnership with Oxford Economics, "uncovers a crisis with intergenerational impacts".

It found that if parents with adult children at home were instead able to downsize, they could unlock an average of £72,400 in equity or save an average £2,400 a year in rent. For lower-income households, that equity could amount to 60% of their non-property wealth.

Chief executive officer at Skipton Group, Stuart Haire, said: “This data lays bare the systemic failure of our housing ecosystem. It’s a failure that is locking millions of young people out of independence, home ownership, and long-term financial stability.

"When 98% of adults living with their parents can’t afford to leave, they’re not just facing a housing crisis – they’re facing a crisis of opportunity."

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