Almost one in four (23%) of 21 to 34-year-olds renting privately have contemplated returning to their family home, according to findings from Compare the Market.

The majority of these young adults cited the high cost of living (55%) as the primary reason, while 40% aimed to save money to purchase a property.

Nearly three in ten (29%) found themselves struggling to pay rent, and an alarming 73% reported difficulties affording their rent over the past year.

Moreover, over one in five (22%) considered moving back with their family to save money for other reasons, such as traveling.

The study also discovered that over a fifth (21%) of 21 to 34-year-olds currently reside in their family home, while a third (33%) live in private rental accommodations.

More than a quarter (27%) own a home with a mortgage, and 8% own their property outright.

Among those residing with their family, 35% do so because the high cost of living prevents them from affording independent living.

Similarly, 35% are saving up to buy their own homes, and 24% simply prefer living with their family.

A majority of 21 to 34-year-olds living at home plan to move out within the next year (64%).

Of these, 40% intend to purchase their own property, while 24% plan to move into rented accommodations.

Helen Phipps, director at Compare the Market, said: “A significant number of young renters are considering moving back into their family home due to high living costs.”

“We would encourage people who are struggling to look for ways to make savings where possible and ensure that they do not pay more than they need to for everyday expenses.”

“People could start by making a note of what’s coming in and going out, avoiding allowing expenses like insurance and utilities to auto-renew, and ensuring that they do not slip onto variable or ‘standard’ rates for credit cards.”

“Comparing costs online using a price comparison website may also be helpful.”

She added: “For homeowners who may have an additional occupant moving back in, it is important that you let your home insurance provider know.”

“Your insurer will need to be aware of how many people live in your home, as this can impact how much you pay.”

“If your home insurance premium increases significantly, you could make savings by switching your provider.”

“Homeowners could save up to £211 on their home insurance through Compare the Market.”