"I have my daughter, partner and 18 month grand daughter here ( that's his main issue) saving for a deposit on a house."
Ok, so maybe that's why he's not moving his things out so fast, he's thinking he'll come back when they're gone. I'm sure they're lovely, and you have every right to have them there since it's your house. But that doesn't change the fact that he's not happy about it.
Do they not get along with him or does he just feel crowded?
I'm suspicious of his not being at his parents a lot though, and I'm sure you are, too. I know it looks like he's seeing somebody. But maybe he just doesn't enjoy spending every night with them, being a grown man and all.
I would pack his things up to get them out of the way. But I wouldn't deliver them to his parents so fast. First think, do you want to try to rekindle things when your dd and family move out? Then maybe you need to hang onto his things for a while. If not, then this is about a lot more than your dd and family staying there.
If the main issue is your family, is there a deadline for them to move out? That might ease the situation, imo.