So – you’ve graduated and are looking to take your first step into the world of work. But first things first – you need somewhere to live.
And with it being somewhat difficult to let go of your university days just yet (i.e. you are frantically clinging to them to avoid tumbling headfirst down the steep learning curve that is the ‘Real World’), you’ll be thinking about moving in with your friends to relive those crazy nights out...and then spend your days...well, nursing a hangover primarily, but also sifting through a mountain of job applications on the side....right?
Well, this may not be an accurate reflection of the truth!
New research by website MyVoucherCodes.co.uk has found that two thirds (67%) of new graduates are having to move back in with their parents, with six out of ten pointing the finger at their financial situation. Cash-strapped grads who lived away from home during their university studies are being labelled the ‘boomerang generation’ as money woes force them to live in the family home post-graduation.
Those seen as ‘riskier’ borrowers are finding it tough to get a foot on the property ladder, with lenders increasingly tightening their borrowing criteria and the number of available mortgages with modest deposits of 10% or less having decreased significantly in recent times. Just to add insult to injury, the average rent in England and Wales rose to £725 a month in July. It is no wonder that only 5% of graduates surveyed are planning to live alone by renting or buying their own home – and that 53% of graduates who plan to live in the family home think they will be there “for the foreseeable future”.
However – there are some distinct advantages to living at home while you work or commence the job hunt. Put all thoughts of less freedom and midnight curfews out of your mind for a second and focus on these beauties:
• You will probably be paying rent at a reduced rate – or none at all. A whopping 56% of graduates said they would not be expected to contribute to bills (hooray!). This gives you a head start on saving and will significantly reduce any money worries that often accompany a starting salary.
If you’re lucky, dinner will magically appear on the table every night and your laundry will do itself – and the time saved can be invested into searching for graduate jobs