Thousands of UK students nearing graduation will be heading back home to find some financial respite, with the vast majority of parents treating their kids to cut-rate rent deals. That’s according to the latest research out today from Compare the Market.
Nearly half (46%) of students returning home are enjoying rent-free living whilst staying in their parents’ home, and those who are being charged are getting a more than generous deal, with the remaining 54% of parents charging just £132 per month on average. This is to cover £68 towards their mortgage or rent, £31 towards gas and electricity bills and £33 towards food.
While many students are enjoying somewhat of a financial ‘honeymoon period’ while living at home after university, these young adults would be wise to prepare for higher costs on the horizon when they finally decide to move out.
The research revealed that ex-students will have to fork out £612.51 each month on rent, food, gas and electricity once they have flown the nest for good. That’s an increase in living costs of around 364%. Those moving to Edinburgh will be the hardest hit, having to shell out as much as £891.28 every month, whereas graduates relocating to Leeds will be nearly £5,000 better off over the course of a year on average.
To help prepare students for this increase in living costs and become more money-conscious as they step into a world post-uni, Compare the Market has launched the “Pa-rental Meter” calculator. The tool reveals average living costs across each postcode in the UK based on local rent, food, gas and electricity prices, providing those living at home with an idea of how much their parents could actually be charging them. Likewise, graduates can use the tool to get to grips with the costs of life as an adult by finding out which towns and areas will suit their budget in terms of living costs, helping them prepare for the likelihood of higher living costs down the line.