Are We Missing A Trick?
Thursday 25th January 2024
These economic times highlight a topic which needs deeper analysis.
Could you live with your parents-in-law?!
In the mid 90’s, my wife’s parents lived with us for 18 months - perfectly harmoniously - though my liver did take a beating.
It was not a big house, and we had to share a bathroom which wasn’t ideal but as it was temporary, we managed.
In our current house, there is no reason why it couldn’t have been a permanent arrangement.
Sadly, they are no longer with us, and we have Ukrainians instead.
Moving from the personal…
Housing costs and the general cost of living make multi-generational living an ever more common lifestyle ‘choice’ for many.
Sharing the cost of:
- Mortgages
- Rent
- Energy bills
- Council Tax
- Household maintenance
- and even cars
makes great financial sense.
Add into the equation savings on childcare costs, staving-off domiciliary and nursing home care costs for the elderly, by having three generations in one home, and many modern-day family cost problems can be alleviated.
Children benefit hugely from having grandparents around - reading together and walks in the park. Grandparents stay fitter. Plus, loneliness and lack of purpose are avoided issues.
The mid-generation can be freer to get back into the workplace - unfortunately still a very real issue for women.
If the older generation put their cash into the multi-generational home, perhaps paying off the mortgage in the process, they further ease the financial burden on the family. Inheritance planning can be improved by the grandparents gifting that value and living the seven years, required to avoid Inheritance Tax.
There would be benefits to the family, plus advantages to society and the economy as a whole.
So, how do we achieve this?
Planners and developers could deliver a percentage of any new development built to suit multi-generational living.
In practice this means taller houses – four storeys - with a second kitchen, two or more living rooms, and a roof terrace as well as a garden. It is entirely feasible to design this into new developments, and these houses need not take up more land space.
On an individual basis, families can relatively easily adapt bigger houses. The cost of putting in an extra kitchen and adapting living space is nothing compared to our ludicrously high Stamp Duty transaction costs.
I welcome your feedback.
patrick@stanleypropertylondon.co.uk
Until next time…….
PB
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