In recent years, the UK has experienced a significant increase in living costs, particularly in housing, energy, and daily expenses. As a result, many families are seeking alternative living arrangements to cope with these financial pressures. One solution gaining traction is multi-generational living. This article explores whether this living arrangement could be a viable answer to the rising costs in the UK.

What is multi-generational living?

Multi-generational living refers to households where two or more adult generations live under the same roof. This could include combinations such as parents living with adult children, grandparents, parents, and children sharing a home or even adult siblings living together with their families.

The rise of multi-generational households in the UK

According to recent studies, the number of multi-generational households in the UK has been steadily increasing. The Office for National Statistics reported that the number of multi-family households grew by 42% between 2007 and 2017. This trend has likely accelerated due to the economic challenges posed by the COVID-19 pandemic and the subsequent cost of living crisis.

Whilst multi-generational living is becoming more common in the UK, it's still not as prevalent as in some other cultures. Approximately 1.8 million households in the UK were multi-generational in 2020, representing about 6.8% of all UK households. This figure has been growing steadily over the past decade.

It's important to note that multi-generational living is distinct from the trend of young adults living with their parents for extended periods to save money for a deposit on their own home. Whilst both situations involve adult children living with parents, multi-generational living is often a long-term arrangement with shared financial responsibilities and mutual benefits for all generations involved. In contrast, young adults living at home to save money is typically seen as a temporary situation with the goal of independent living in the future.

Potential benefits of multi-generational living

1. Financial advantages

• Shared housing costs: Splitting mortgage or rent payments among multiple working adults can significantly reduce individual financial burdens.
• Pooled resources: Sharing utility bills, groceries, and other household expenses can lead to substantial savings.
• Reduced childcare costs: Grandparents can often provide childcare, saving on expensive nursery or after-school care.

2. Social and emotional benefits

• Enhanced family bonds: Living together can strengthen relationships between generations.
• Reduced isolation: Older family members may experience less loneliness and isolation.
• Shared caregiving responsibilities: Family members can support each other in times of need.

3. Practical advantages

• Efficient use of space: Larger homes that might be underutilised by a nuclear family can be fully occupied.
• Shared household responsibilities: Chores and maintenance tasks can be divided among family members.

Multigenerational can allow families to reduce their costs and spend more time together

Challenges and considerations

Whilst multi-generational living offers numerous benefits, it's not without its challenges:

• Privacy concerns: Family members may struggle to maintain personal space and independence.
• Potential for conflict: Differing lifestyles, values, and expectations can lead to tensions.
• Legal and financial complications: mortgage terms or tenancy agreements can be complex.
• Design limitations: Many UK homes are not designed to accommodate multiple generations comfortably.

Alternatives for young people: Shared Ownership

Whilst multi-generational living can be a solution for some, many young people still aspire to independent homeownership. Shared Ownership offers an alternative path to get onto the property ladder. This government-backed initiative allows first-time buyers to purchase a share of a property, usually between 25% and 75%, and pay rent on the remaining share.

What are the benefits of Shared Ownership?

This alternative way to buy requires a lower deposit than when buying a home outright. Many Shared Ownership homes are located in otherwise unaffordable cities such as London. Buyers can also choose to gradually increase the percentage of shares they own over time through a process called staircasing. In some cases, the monthly costs end up being cheaper than renting privately.

Is multi-generational living a viable solution?

Multi-generational living has emerged as a practical solution for many UK families grappling with rising costs. However, its success hinges on several key factors. Healthy family dynamics, characterised by open communication, mutual respect and clear boundaries, form the foundation of harmonious cohabitation.

Equally important is the availability of suitable housing, which may require adapting existing homes or selecting new ones that can comfortably accommodate multiple generations under one roof. Financial planning plays a crucial role, with clear agreements on bill-sharing and expenses necessary to prevent conflicts.

As this living arrangement becomes more prevalent, a shift in societal attitudes and cultural acceptance may be needed to fully embrace the benefits of multi-generational households.

Whilst not a one-size-fits-all solution, multi-generational living presents a viable option for many UK families grappling with rising costs. Its financial benefits are clear, but success relies on careful planning, open communication, and mutual understanding among family members. For young people seeking independence, alternatives like Shared Ownership can provide a stepping stone to property ownership.

As economic pressures continue to mount, we may see various living arrangements, including multi-generational households, become increasingly common in the UK. This trend could potentially reshape our understanding of family life, home ownership, and community structures. Policymakers and urban planners must consider these shifting dynamics when addressing housing needs and community development in the future.