Almost half of 18 to 40 year-olds have experienced housing insecurity in the past five years, new research suggests.

A survey by financial education charity Money Ready found that 48% of adults in that age range had faced problems such as rent or mortgage arrears, eviction, emergency accommodation or rough sleeping.

A quarter had experienced more severe housing insecurity, including sofa surfing because they had nowhere else to go, staying in emergency accommodation or a shelter, or sleeping on the street or in a car.

Half of those surveyed said a lack of financial education had directly contributed to their housing difficulties.

Money Ready found a strong association between financial literacy and housing security.

Its research revealed that 57% of those with the lowest financial literacy experienced housing problems compared to 29% of those with high financial literacy.

Those with low financial literacy were also three times as likely to have experienced rough sleeping, at 12% compared with 4% among people with high financial literacy.

They were three times as likely to have faced eviction proceedings, at 9% compared with 3%.

The research, funded by the Berkeley Foundation and released ahead of World Homeless Day, also found 35% of 18 to 40-year-olds felt completely unprepared for the financial demands of independent living.

More than one in five, or 22%, said they had never received any formal financial education or guidance.

Money Ready is calling for financial and benefits-related factors to be recorded as potential contributing causes in homelessness data.

It also wants statutory money guidance, with outcome tracking, to be embedded in homelessness assessments and support.

The charity is further calling for financial education and capability to be named as a prevention activity under the Homelessness Reduction Act 2017.

Money Ready director of fundraising and communications Becky Young says: “On World Homeless Day, we must talk about prevention, not just emergency relief.

“We are setting young people up to fail if we expect them to navigate a complex, expensive housing market without giving them basic financial tools first.

“When half of young adults tell us that a lack of financial education directly contributed to their housing distress, we cannot treat youth homelessness purely as an unpredictable crisis – it is an education void.”

Berkeley Foundation head Sally Dickinson adds: “World Homeless Day shines a necessary light on the systemic challenges facing young people today.

“This research shows a clear and concerning link – young adults without basic financial education are far more vulnerable to severe housing hardship.

“While financial education alone cannot solve the structural shortage of affordable housing, leaving young adults to navigate the system without basic guidance significantly increases their risk.”