Rico Wojtulewicz, Director of Policy and Market Insight, National Federation of Builders discusses the housing crisis and the idea of Grad pads as a solution.

For many young adults, staying at home past their 16th birthday is no longer a given.  Parents hoping for a period of relative freedom are finding that the housing crisis is putting paid to that dream.

According to the Institute for Fiscal Studies (IFS), the number of 20- to 34-year-olds living with their parents rose from 3.3 million in 2014 to 3.6 million in 2024. The highest concentrations are in areas with strong house price growth since 2006, with London leading the way.

Research by Skipton Group, surveying 2,000 adults living with their parents, found that 43% wanted better access to affordable housing and rent support, 29% had moved out but returned home, and 83% of those saving for a deposit were still far from achieving it. Top frustrations included lack of personal space and limited freedom.

Grad Pads: A Practical Solution

More housing is clearly needed, but with planning and delivery timelines often exceeding four years, shorter-term solutions are required. One approach is upgrading existing homes to accommodate adult children.

A Times article (14 February 2026) highlighted families altering properties to support multi-generational living. From loft conversions to garage and garden extensions, these “grad pads” provide extra space for adult children, enabling them to save money and advance careers.

Enabling Innovation Through Modern Methods of Construction

The cost of such works, coupled with increased planning and Building Regulation fees, can be a barrier. But this challenge also represents an opportunity to stimulate construction and promote Modern Methods of Construction (MMC).

“Previous governments have viewed MMC as offsite volumetric housing and therefore wasted its broad scope. Craned-in lofts, 2D components assembled onsite into 3D structures, steel frame spaces, pre-assembled garden rooms, and panelised walls are all MMC,” writes Wojtulewicz.

MMC solutions combine traditional construction skills with innovative approaches, offering flexible, efficient, and safe ways to expand homes while integrating utilities, drainage, and structural support.

Planning Restrictions Limit Opportunities

While permitted development (PD) allows certain small extensions without full planning, larger projects such as additional floors, detached bedrooms, or kitchen extensions require prior approval. Homes built pre-1 July 1948 or post-28 October 2018, as well as those in conservation areas or national parks, are subject to stricter regulations.

“It is therefore no surprise that one of the conversions in The Times featured Richard Dudzicki, an architect who spent close to £500,000 on his project. Yet 70% of the work at his studio involves designs to accommodate adult children,” Wojtulewicz notes.

Though PD for upward extensions initially faced high refusal rates, approvals have now begun to exceed refusals, showing that rules-based systems can support intergenerational living. Pattern books and supported reasoning, as used historically for rural workers’ dwellings, could further simplify the process.

Grad Pads and the Housing Crisis

While not a silver bullet, grad pads represent a practical step towards easing housing pressures. In a country with a shortfall of around 4 million homes, every opportunity to improve housing access—through extensions, conversions, and innovative MMC solutions—needs to be explored.

“Planning reform and MMC innovation, combined with smarter use of existing homes, can help young people stay in their communities while relieving some of the strain on the UK housing market,” concludes Wojtulewicz.