Welcome to our first episode of Industry Insight. In today’s episode, we will be discussing intergenerational living in 2020: A Post-Pandemic Property Trend. As the UK emerged from COVID-19 lockdowns in 2020, intergenerational living rapidly gained attention. Families who had been isolating together began to reconsider their long-term housing needs. Many chose to consolidate households—not just for emotional support, but for practical and financial reasons. The pandemic made it clear: how and where we live matters more than ever.
During lockdown, multigenerational households became common. Families came together to reduce expenses, care for elderly relatives, or simply stay connected. This shift reflected not only a short-term solution, but also the emergence of a property trend that’s expected to shape the UK housing market for years to come.
Industry Insight: Intergenerational Living in Europe and the UK
In many parts of Europe, particularly in Southern countries like Italy and Spain, intergenerational households have long been the norm. Historical and economic factors, especially the 2008 financial crisis, made multigenerational living a necessity. According to Eurostat data, from 2008 to 2018, the percentage of Italians aged 25–29 living with parents rose from 61% to 67%. In Spain, it increased from 51% to 63%.
The UK began to follow a similar path in 2020. The Bank of England warned of the worst recession in a century, triggering economic uncertainty across households. Even before the pandemic, Office for National Statistics (ONS) figures had highlighted that multi-family households were the fastest-growing segment. Between 2000 and 2020, they grew by over 75% to reach 297,000, or 1.1% of all UK households. COVID-19 likely accelerated this trend.
The outlook from that time strongly indicated that intergenerational property purchases would become a key feature of the post-pandemic “new normal.”
Property Purchases to Suit Intergenerational Living
In 2020, mortgage enquiries surged for properties that could accommodate extended families. At Harpenden Building Society, we saw a clear uptick in families buying homes together—motivated by long-term financial planning and a desire to live closer to elderly relatives.
Typically, these properties included a self-contained annexe or dual dwelling units on a single title deed. Unlike many mainstream lenders, who were hesitant to approve mortgages on homes with more than one dwelling per title, we embraced these opportunities. Our specialist mortgage lending approach allowed us to manually underwrite each case and consider the broader context of the applicant’s needs.
Lending Flexibility for Complex Applications
We frequently supported joint mortgage applications with up to four parties, combining incomes across generations to assess affordability. For cases involving elderly parents, we took a proactive stance on lending into retirement, tailoring mortgage terms to suit each applicant’s circumstances.
We recommended working with lenders like us that evaluate diverse income types, including:
-
Basic salary and bonuses
-
Dividend income and retained profit (for limited company directors)
-
Commission earnings
-
Unearned income: pensions, rental income, investments, child maintenance
This comprehensive approach opened the door for families to access more flexible mortgage options, particularly in complex intergenerational scenarios.
For advisers supporting clients with these needs, our Specialist Mortgage Network for Advisers provides tailored solutions and underwriting support.
Case Study: Real-Life Intergenerational Living
Hertfordshire resident Gary Cooper shared his family’s experience in 2020. Living in the same town as Harpenden Building Society, Gary and his wife wanted to care for his 96-year-old mother-in-law, Molly personally. They sold both properties and purchased a home with a custom Granny Annexe.
“Molly has her own lounge, bedroom, and wet room,” Gary explained. “She enjoys privacy while being just steps away from us. The setup gives us peace of mind and lets our family spend more time together.”
This arrangement, created in 2018, became even more relevant during the pandemic. It highlighted the emotional and practical advantages of intergenerational homeownership, something more families were beginning to consider by 2020.
Creating Relevant Mortgage Options for Intermediaries
In response to the shift, we began developing intergenerational mortgage products in consultation with local communities. Mortgage intermediaries had a growing need to serve clients exploring multigenerational living.
At Connect for Intermediaries, we work closely with brokers to structure solutions for unique scenarios. As part of the Connect Network, mortgage advisers gain access to lenders like Harpenden who can:
-
Consider multiple applicants across generations
-
Support lending into retirement
-
Accept varied income types
-
Underwrite complex property titles
Our team provides training and support so brokers can confidently guide families through these types of transactions.
Industry Insight: Why Intergenerational Mortgages Mattered in 2020
The demand for flexible mortgage solutions surged in 2020. Economic pressure and social shifts created a new kind of homebuyer: one seeking stability, proximity to loved ones, and financial synergy.
Lenders that adapted their criteria, offering manual underwriting and considering diverse incomes, stood out from the crowd. Mortgage intermediaries aligned with such lenders were better positioned to support families in transition.
If you’re a broker or adviser, understanding this shift was key to serving clients effectively in 2020. For deeper insights, see our guide on How to Find a Mortgage Network that supports specialist cases like these.
Meeting Evolving Needs
While 2020 posed unprecedented challenges, it also reshaped how families thought about homeownership. Intergenerational property purchases emerged as a smart solution for both financial and emotional well-being.
Specialist lenders who recognised this shift were ready to meet the moment. And with the right mortgage network partnership, advisers could help more families navigate this trend with confidence.
Credit: Graeme Aitkin, Harpenden Building Society | To explore mortgage solutions for your clients, join the Connect Network.
Our thinking has shifted dramatically as we gradually move towards a post-pandemic era. This change is most evident in how and where we choose to live. During lockdown, many families moved in together. They shared resources to save money, cared for older generations, or looked after sick family members. They also isolated together to maintain face-to-face human contact.
Thank you for reading our publication on “Industry Insight | Multigenerational Living Is On the Rise” Stay “Connect“-ed for more updates soon!