PLAYING THE GENERATION GAME: IT’S A FAMILY AFFAIR
Buying a property with a view to sharing with grandparents or other family members is on the rise, but what are the caveats to be aware of before committing? Arabella Youens investigates
Multi-generational living is far from a new idea. Classic country estates have long had dower houses and it was common during the Victorian era for multiple layers of the family to live under one roof. It was during the 20th century that this style of living went into decline in Britain and the concept of living within the nuclear family was born. The tide is starting to turn, however. A paper published by the University of Cambridge in 2019 found that the number of multi-generational households in the UK was on the rise – the reasons ranging from an ageing population, challenges with housing affordability and young people taking longer to leave home. Although a sector that is little studied, it’s estimated that 7% of UK households now contain two or more adult generations. The experience of the pandemic is expected to push up these numbers further. Propertyheads.com revealed that searches online for houses with so-called granny annexes went up by 16% during March and April 2020. Clearly, the forced separation from older parents brought on by lockdown conditions has made many rethink the logic of nuclear family living. Britain’s new housing stock is not addressing this need, as campaigners point out. A fundamental rethink of housing and planning is already happening across Europe. In Germany, projects include the Mehrgenerationhaus (multi-generation house) programme, while Holland’s government has set a goal of creating 500,000 multi-generational homes by 2040. Country houses – especially those with outbuildings – are often better suited than urban terraces to accommodating another generation. Those who have experienced living in close proximity to either their parents or grown-up children agree that one of the most important elements for keeping the family dynamic harmonious is separate space – including, where possible, a separate front door. “It’s why houses that come with scope for an annexe, or a barn which could be converted into one, always have added value,” believes Rupert Sturgis of Knight Frank’s Cirencester office. “Of course, Catholic Europe – as well as elsewhere – has much more experience of living together in family groups. Here, we’re a little out of practice. But it’s easy to see the benefits of being able to support each other.”
The financial attractions of buying a house with a ready-made granny annexe are considerable. Properties that come with two residential addresses immediately qualify for multiple-dwelling relief, which effectively cuts the headline Stamp Duty Land Tax in half. “You can also be tax efficient when the time comes to transition the property,” adds Rupert. Combining budgets will, of course, buy a larger property, which is what motivated Paula Turner-Cooke to join forces with her daughter and son-in-law back in 2013. “Recently widowed, I was looking to downsize. Buying together made sense. Not only could my daughter and son-in-law have a more substantial house and more land, it also meant I could continue to live in a country-house setting and be on hand to help. There’s plenty to do, too, for those who are active – I call them the three Gs: gardens, grounds and grandchildren.” Mrs Turner-Cooke and her daughter went one step further, however. Not only were they keen to take on a restoration project, but they were also looking for a property with outbuildings to establish their own business which they could manage together. They bought a Grade II listed Georgian farmhouse in need of major renovation, with various barns – including one that had the bones of a perfect two-bedroom property with its own entrance – standing in 28 acres in Wiltshire. The project took several years to complete and involved many rounds of listed building consent, but today the family runs two successful holiday lets in the former 18th century farm courtyard. Her advice to anyone planning a similar enterprise is to get everything agreed in writing first. “Otherwise, it can end up in disaster, with people falling out with each other,” says Mrs Turner-Cooke. “Everyone needs to understand how it will work – from who will live where, down to who is responsible for which bit of the garden. Taking professional legal and financial advice before committing is fundamental. This has the added benefit of future-proofing assets in terms of Inheritance Tax, too.” The result speaks for itself. “It was definitely the right move. I’m kept busy with the holiday lets and the gardens. I have my own space and yet I’m never lonely because my family is on the doorstep. If the family dynamic is right, the benefits are wonderful.”
It’s not always the case that grandparents are moving in with their children – sometimes it’s the other way round
Stephen Green, co-founder of HollandGreen, an award-winning residential design studio, says they are seeing an increasing number of clients planning for multi-generational living, whether that is a granny annexe or a space for late teenagers or young adults to be separate from the main house. The company recently remodelled and upgraded a “higgledy-piggledy” selection of barely habitable spaces adjoining a Grade II listed Georgian house in Oxfordshire into a one-bedroom granny annexe. Where ceiling heights were low, they opened up to the eaves to increase the feeling of space, and created a pantry/kitchen which is the link to the main house.
“If an annexe doesn’t already exist, then there can be issues with planning in establishing a separate household, and implications with Council Tax, and with tax when buying and selling the property,” warns Stephen. “Each case [and local council position] is different. If no annexe currently exists, it is often possible to form an annexe that is incidental to the main house in that it does not have a separate entrance and forms part of the main house.”
It’s not always the case that grandparents are moving in with their children – sometimes it’s the other way round. “We initially wanted to find two properties near each other so we could be close to my parents,” explains one client of oak-framed building specialists Prime Oak. The solution was to build themselves a house in her parents’ garden. “We couldn’t find anywhere else to rival the view and location – we’re delighted with the result.”