Independent Financial Life Planners Bishop's Stortford: Living together longer?

Thursday, 24 November 2016

Living together longer?

Despite the Chancellors Autumn statement saying £7.2bn will support the construction of new homes, including spending by housing associations, and a new £2.3bn Housing Infrastructure Fund established for infrastructure for up to 100,000 new homes in high-demand areas, Britain's broken housing market is still likely to see household sizes grow. Currently in the UK more people are living under one roof than at any time in the past 17 years. More adult children live with their parents and house shares, both rented and bought, are growing. Young people are marrying later and more likely to be single and the number of under-65s who live alone has fallen by 244,000 since 2012, according to Government data.

The average property is now worth six times the average salary, according to Nationwide. This makes it out of reach to most single buyers. With house prices rising much faster than salaries unsurprisingly, young people are joining forces with parents, partners or friends to be able to reach the required level. Sharing a rent or a mortgage clearly makes it more affordable but if living with the children is not for you more parents and grandparents are finding the way to help is by handing over cash to use for deposits, or by joining a child on the title of a property so their income can be taken into account for affordability. Some parents and grandparents are even releasing money from their own homes in order to be able to help.

As with most large scale financial transactions there are tax and legal issues that need to be considered. Parents might find they incur an extra three percentage points of stamp duty if they help a child buy because of the surcharge introduced in April this year. Enables IFAs in Bishops Stortford can help you with the detailed financial planning required.

http://www.telegraph.co.uk/personal-banking/mortgages/first-steps-on-the-property-ladder-find-a-partner-or-a-parent/

Issued by: Enable Independent Financial Life Planners •  25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 - Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE

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IFA Bishop's Stortford

At Enable Independent we know that our clients trust us and rely on our advice to help them to plan a better, more secure financial future. This is a responsibility that we take very seriously especially because we know that many clients have chosen us on the recommendation of friends and family. Each one of our advisers has deep expertise in their area of specialist knowledge and, as a team, we hold some of the highest qualifications available in the financial advice industry.

Our job satisfaction comes from using our skills to find workable, affordable and flexible solutions to meet our clients needs. Whether we are planning for known future funding requirements such as house purchase, school fees or income in retirement - or for the unforeseen such as job loss, long-term illness or early death, our independence from any product provider enables us to view the marketplace impartially. Our training permits us to look beyond a product's marketing hype and select on the basis of its fitness for purpose.