Around 7.2 million over-65s would consider buying a bungalow, showing a strong demand for single-storey homes among the older population. With only two million bungalows ever having been built in the UK, however, it’s clear that demand far outstrips supply⁷.

As our population ages, more thought needs to be given to the provision of housing suitable for their needs. Living on one level minimises the chance of dangerous falls, while many believe that bungalows are easier for older people to maintain.

And, with many empty nesters living in homes that are now too big for them, more suitable housing provision for this age group would free up larger family homes for younger generations.

⁷McCarthy & Stone, 2019

Don’t believe us? Keep reading for some handy tips to help you get on the property ladder while enjoying the benefits of working for yourself.

Getting a mortgage is hard enough these days but being self-employed adds an additional layer of complexity. So much so, in fact, that over a million self-employed Britons believe they’ll never own a home!⁸

Inflexible lending criteria?

When you apply for a mortgage, your lender will want to know that you have a steady income and that you’ll be able to keep up with your repayments. For self-employed people, who are more likely to earn sporadically, this can be difficult. Typically, lenders will ask for three years’ worth of accounts as proof of income before making an offer, although there are a few that might lend on less. No wonder two-thirds of selfemployed workers are finding it hard to get a mortgage!

So, is it possible?

In short, yes. There are things you can do to make lenders more likely to accept your mortgage application – here are just a few:

• Do your research – there are lenders out there with more favourable lending criteria, so it’s worth looking around to see what’s on offer
• Keep your accounts straight – lenders will want to scrutinise your accounts to check your earnings
• Build up that deposit – even if you really don’t think you’ll be able to get a mortgage, a good deposit is an excellent starting point and could hugely increase your chances – so get saving!

Come to us

We understand the difficulties of getting a mortgage when you’re self-employed – but it’s not impossible. We can help you to find more flexible providers who are open to lending to self-employed people. So, don’t give up! Just get in touch.

⁸Kensington Mortgages, 2019

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.

Earlier this year, the government announced plans to scrap two types of tax relief for landlords who sell a property that was once their home. Homeowners in these circumstances are often referred to as ‘accidental landlords’, as when they originally acquired the property it was not with the intention of letting it out. They may choose to do so because they are having trouble selling, are relocating or they may have inherited it.

The clock is ticking

The new rules will take effect from 6 April 2020 when the tax relief, known as principal private residence relief, will be reduced from the existing extension of 18 months to nine months. So, when a property that was once a main home is sold, the tax payable is on the amount it goes up in value while it is let out. Currently the owner is allowed to add 18 months to the amount of time they lived at that property; from April next year they will only be able to add nine.

Lettings relief is to be scaled back at the same time, meaning that landlords selling their former home after renting it out will no longer be allowed to shelter £40,000 of the gain from Capital Gains Tax (up to £80,000 for couples). From April next year, only landlords who continue to live in the property will qualify for this benefit.

The Financial Conduct Authority does not regulate some forms of tax advice.

The new rules will take effect from 6 April 2020 when the tax relief, known as principal private residence relief, will be reduced from the existing extension of 18 months to nine months.