Wednesday, April 25, 2007
A report from Alliance & Leicester Mortgages has revealed that a demographic shift to a low mortality/low fertility rate is leading to the creation of new generations of homeowners.
The ‘Changing UK Household Market’ report from the Alliance & Leicester has shown that UK society is changing in response to developments in the political, social and economic landscape. As the population is living longer, people are spending longer at the various life stages and then living in more houses than in times gone by.
The report reveals that adult children are spending longer in the nest and that by 2026 78% of the adult population will have spent longer at home with their parents. This is said to lead to a ‘Peter Pan’ attitude, with adult children never wanting to grow up. Quite happy to rely on their parents, this leads to adult children leaving home at an older age, which then leads to getting married and having their own children later in life. The average age that women currently have their first child is now 26.7 years which is said to rise to 29 by 2026. In the future, this pattern will lead to people having simultaneous demands from both elderly parents and their children who haven’t yet left home.
Stephen Leonard, Director of Mortgages at Alliance & Leicester comments: “Our research demonstrates the appetite for moving will increase in the future as new generations of householders emerge, keeping the housing market full of life. Changing demographics and social attitudes will inevitably have an effect on the housing market in the future, for example, the number of times that people move in their lifetime, or the increase or decrease in the type of household they live in. These trends are predicted to change dramatically in the next 20 years.”
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Homeowners with children still in the nest needing their own space, could consider extending their property with a homeowner loan. A home loan could provide the finance required to add an annexe for adult children giving them a place where they can entertain friends out of their parents’ way. One of many options to fund home improvements, a home loan can be used to extend property in several ways. Whether it be an annexe, a loft or basement conversion, or a garage conversion, there are plenty of home improvement ideas that can be taken care of with a
homeowner loan to provide room for adult children still living at home. Home loans can usually be repaid over a term to suit the borrower from 5 to 25 years.
