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The Masked Tulip

29% Of Working Adults In Wales Are Still Living At Home Due To Unaffordable Rising House Prices

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It is basically an advert below for building your own home... and the advice for priced out people appears to be to build your own home on your parents' land... but the Shelter info about 29% of working adults in Wales unable to afford a home is interesting.

A recent survey by Shelter reveals that one in four young working adults aged 20-34 still live with their parents because they can’t afford to get on the property ladder.

When this is regionally broken down, this amounts to 29% of adults in Wales who are still living at home due to unaffordable rising house prices.

Michael Holmes, spokesperson for The London Homebuilding & Renovating and Home Improvement Show (26-28 September, Olympia, London, www.homebuildingshow.co.uk/london), provides commentary and property advice for people who find themselves in that position:

What can parents do to create a multigenerational home?

Self-build in the Garden

Only an option for those who have a large garden, but many self-build projects are created on garden plots where a section of garden is sub-divided and planning permission granted for a new dwelling. Parents can gift the plot as a potentially exempt transfer (free of CGT, SDLT and potentially from IHT subject to the 7 year rule).

Anyone with an income could apply for a self-build mortgage, possibly on a joint or guarantor basis with their parents, and build their own home.

Create an Annexe with its own kitchen and bathroom:

Convert a detached garage or garden outbuilding

Build a new annexe in the garden (build as an office and convert to annexe later) - this could be a substantial building if the garden is large and may not even require planning permission

Convert the loft to form a self-contained living space

Convert the cellar/basement into a self-contained living space

Convert part of the house (sub divide) to create a self-contained living space

Extend the house to form an annexe e.g. add an extension to the side or back, add a new storey above or even a basement storey below.

Positives: Will not require planning permission as an annexe if occupied by a member or dependent of the main household (it would to form an independent dwelling). Provides privacy and independence for all parties. Can add value to the property if done well. With planning permission could be let out to generate an income (must be under an Assured Shorthold Tenancy and with Lenders Consent).

Negatives: Unlike a spare bedroom (rent a room scheme) it cannot officially be occupied by a third party without planning permission. It will attract a second council tax charge as a separate dwelling and cannot be re-listed without fully removing either the kitchen or bathroom.

Affordable Self-build Schemes/Community and Group Self-build Schemes

As part of the Government's many initiatives to encourage people to build their own home, and to improve affordability for those in housing need, some local authorities are making land available on a build now pay later basis, on a shared ownership basis (where the land is held by a community land trust (CLT), or for part ownership part rent - with the option to buy a larger share in the future. Schemes in Devon and Cornwall have brought the cost of home ownership - and thereby a foothold on the property ladder - down to as low as £60,000. Often builds are undertaken as part of a community group working together, sharing costs, skills and knowledge.

There are community and affordable self-build schemes being set up across the country - for details visit www.self-buildportal.gov.uk

If there isn't currently a scheme near you, you can work with others to try and set one up. Under the Right to Build initiative recently announced by the Government - of which more details are to be announced - everyone will have the right to register their interest in building their own home and the local authority will have a duty to ensure that suitable affordable plots are made available by granting planning consents and working with local registered providers such as Housing Associations.

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Why don't people just build their own home on the millions of acres of low grade agricultural land strewn around Wales?

That's right - the government deny them access to the land via planning restrictions.

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Why don't people just build their own home on the millions of acres of low grade agricultural land strewn around Wales?

That's right - the government deny them access to the land via planning restrictions.

In Wales they have turned vast areas into National Parks - and only the 'chosen' get to build on them.

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>Build a new annexe in the garden (build as an office and convert to annexe later) - this could be a substantial building if the garden is large and may not even require planning permission

The process to avoid planning permission takes a while:

1. Use class E permitted development for a genuine ancillary use. e.g. garage, cinema, hobby workshop, snooker room. Get a lawful development certificate. No kitchens allowed. No bathrooms unless related to use e.g. to shower after a swim/gem session.

2. Wait a period of time (undefined).

3. Add kitchens, bathrooms etc (at this point, it is not covered by permission but difficult to detect with internal modifications only)

4. Use as above for four years

5. Apply for lawful development certificate

=> Now legal

It is of course a risk that a neighbour raises the alarm at stage 3.

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Since the government upped the HB shared room rate age threshold to 35 years and above, it's now quite a risk for a person aged below to take on a tenancy on a one bedroom or studio flat in many parts of the country.

That is unless they have a very secure job, wealthy parents or lots of money in the bank. Granted they may not lose their job immediately but it is a risk and who would want to be lumbered with a possible 5 to 11 months of rent repayments @ about £600 a month - £258 LHA?

I suppose it might incentivise them to find a job sharpish but to be honest I find it unlikely they just want to sit on their arses doing nothing if they've gone to the trouble of moving.

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