The sense of shame and laziness often associated with adults living at home has diminished in recent generations; as they face record-breaking property prices; sizable student-loan debts and flatlining wages. Indeed, under-30s are bearing the brunt of the cost of living crisis; and struggling to secure their own properties as a result. With all these increased pressures, alternative housing options are increasingly being sought out; with young people in annexes becoming a popular choice for many.
Far from a recent issue; the number of 20 to 34 year-olds living at home increased by a third between 1998 and 2017 – and has continued to rise since. However – with recent increases in cost of living; young people are now almost equally as likely to live in an annexed space as their elderly relatives. In fact, 25% of pre-existing builds are currently used by the younger generation; while older generations only inhabit slightly more at 27 per cent.
What’s more, it’s an option made all the more poignant by recent comments in parliament. Indeed – in May, Conservative MP Jackie Doyle-Price suggested that the government should incentivise granny annexes; and ensure that young people have greater access to the wealth in their parents homes. As such, here’s three cost of living benefits to housing young people in annexes; and how constructing one could provide considerable financial benefits amid the current cost of living crisis.
1) Young People in Annexes can Save for a Deposit
With record-breaking rises in property prices – and an unstable job market; young adults are increasingly moving back in with their parents while they struggle to get on the property-ladder. Indeed, the average UK property price in April had risen by 10.8% from the same month last year; with the average homeowner experiencing an almost £50,000 increase in property-value over the last two years. As a result – a third of UK households are now multi-generational; with adult children returning from university accounting for two in five of them.
Annexes and garden homes are an increasingly popular choice for young people returning to the family home; offering them a chance for independence while they save for a deposit on a place of their own. As such, it’s no surprise to learn that they’re most common in the south east of England – where cost of living and house prices are at their highest. London properties – in particular, feature a constructed or converted annexe in almost one in ten households; with a further 12% of homeowners planning to develop one soon.
It’s commonly acknowledged that there’s little-to-no interest rate at the Bank of Mum and Dad. However – with parents also experiencing the cost of living pinch; many feel they’re unable to support adult children due to their own increasing financial pressures. Having a one or two-bedroom annexe constructed can provide an alternative living arrangement in these cases; where adult children can live rent-free while saving for a deposit on a house of their own.
2) Young People in Annexes can Live Independently
For young people, returning home after university can feel like a huge step backwards. Not only does it mean losing some much needed privacy; it can also be a major concern that the process will strip them of their independence. In fact, research has shown that adults facing employment issues – and the prospect of moving back in with parents; experience higher levels of depressive symptoms. In these cases, constructing a garden annex could allow them to continue living independently – while saving money in the process.
Furthermore – it’s not just young adults that gain from calling an accessory dwelling unit; as parents also benefit from a more divided form of living. Indeed, the prospect of someone returning home can often be daunting for those who’ve found enjoyment in having an empty-nest. When adult children live in a private annexe space – however; parents can relax knowing they won’t be getting taken advantage of – or used as a personal cook, cleaner and laundromat.
3) Other Financial Benefits for Young People in Annexes
There are plenty of other financial benefits to having an annexe constructed; meaning that – even if it’s originally built to house adult children rent-free; it can still be a solid investment long-term. Downsizing to a granny flat has long-been a popular choice for housing elderly relatives; whether it’s due to mobility issues or to avoid expensive care options as their health declines. In these cases, older relatives can choose to live in the annexe themselves; opening up their pre-paid property for use as a grandchild’s first home.
Alternatively, an annexe could generate a passive income once adult children have a place of their own. Indeed, while they cannot be rented out under a standard shorthold tenancy agreement; taking in a lodger – or renting the space out as a holiday-let, can be financially beneficial. Furthermore, it’s estimated that an annexe could add up to 20-30% onto the market value of a given property; making it a solid investment down-the-line.
iHus – Here to Help
At iHus, we’ve got over ten years experience constructing over 300 garden homes. We understand that circumstances differ; which is why we take pride in creating a space to suit your family’s needs – regardless of who’ll be living in it.
Get in touch with our friendly and devoted team today to find out how we can help create an annexe space for you – or your family; to truly call home.