Nicholas Craig column

Sep 23 2005 By Nicholas Craig, The Journal

Newcastle's streets are suddenly full of new students. For many families this will be their first year as "empty nesters".

Old routines of school days, holidays and messy bedrooms are gone. The house is strangely quiet, cupboards unusually well stocked and rooms eerily tidy.

Within weeks, however, this strange new world gradually looks more attractive. Early empty nesters have never had it so good, according to a Datamonitor report, with parents splashing out on luxuries for themselves.

The level of disposable income they can enjoy now mortgages are paid and children's expenses are less makes the "spend now, save later" mantra possible. Which is why business receives an indirect boost in September.

It is comforting to focus on a consistent part of your life when you are missing another. It also provides a solid social existence and the fiscal remuneration, you slowly realise, is there to be enjoyed by yourself.

So while sons and daughters grapple with lectures, tutorials and hangovers, you are newly invigorated to reap the rewards of current and future job prospects.

In turn, housebuilders, car dealers, travel agents and leisure centres all benefit from newly independent parents flush with cash and keen to spend.

Empty nesters are a powerful consumer force. By 2008 there will be 8.5 million of them in the UK, spending £46bn on consumer goods.

So, the sudden spurt of conscientious behaviour in the office and the new-found ambition for promotion from colleagues whose children have left home can be explained by the tempting lure of far-off beaches, sports cars and golf, now all seemingly within reach.

However, just as parents are lulled into an enjoyable lack of responsibility it is the end of term, and a return to family life.

The house is full of young people, the car is full of food and voluntary jobs as chauffeur and cleaner again take up the time temporarily allotted to looking after yourself. Flexibility has to be learned all over again.

The indirect effect of universities on business life - spurring parents on to boost their careers and salaries - is growing.

As long as we can enjoy the fruits of our labours while the children are not looking, we can rejoice in the knowledge that we are helping local businesses to prosper.

Nicholas Craig is a partner at Watson Burton LLP