Boost to successful Government rough sleeping programme across the North West

MORE rough sleepers across the North West will be helped off the streets and into safe accommodation, following the announcement of ₤9.9m in funding for Councils across the Region, Housing Secretary Robert Jenrick MP has announced.  Nationally, this funding is a 30% increase this year and will be used by local authorities, charities and other organisations to fund up to 704 new bed spaces and 230 support staff across the Region. This will help vulnerable rough sleepers get what they need to rebuild their lives. This could mean a roof over their head, access to specialist mental health or addiction services, or advice on how to secure a home in the long term.

Homelessness Minister Luke Hall MP said:- "No 1 should have to face a night on the street, and we have a moral duty to support those who need help the most. It is encouraging to see more people getting the support they need, but there is always more to do.  There are people all over the North West working tirelessly to improve the lives of the most vulnerable in our society. Our Rough Sleeping Initiative is proving to be successful, and this funding will mean this vital work can be continued as we set out to end rough sleeping once and for all."

Government funding for rough sleeping has already helped hundreds of people across the North West to improve their lives and get off the street. This is a coordinated effort across housing, addiction support, mental health services and Policing. We intend to continue to bring all parts of Government together to end rough sleeping by the end of this parliament.

The funding will be used by Councils to:-

► Create street based services including outreach teams who will locate and support rough sleepers directly on the streets and offer them access to services.

► Establish 1st stage accommodation such as hostels, Somewhere Safe to Stay hubs and emergency access beds which provide warm and dry shelter, rapid assessment, and support to people who are already; or at risk of; sleeping rough.

► Set up housing support and housing led solutions providing stable, affordable accommodation and intensive wrap around support to help people who are sleeping rough recover from complex issues and sustain their tenancies.

► Introduce specialist support workers including Rough Sleeping Coordinators, navigators, and specialist health and care staff.

The Rough Sleeping Initiative was launched in 2018 to ensure local areas were being given the boost they needed to provide these vital services for those living on the streets. Overall the funding will help to create up to 5,000 bed spaces and employ 2,500 staff, giving people access to a roof over their head when they need it most as well as the help they need to recover from a life on the streets.

Should you lend your children money for a house deposit?

PARENTS are being urged to seek legal advice before lending money to their offspring and their partner; or risk losing it in the case of divorce or death. Michelle Hamilton Graney, private client solicitor at Merseyside law firm Kirwans, said that, with many children starting the search for their 1st home this month, parents eager to help should be aware of the pitfalls of lending without a legal document in place.

Without a written agreement, she said, those lending through the Bank of Mum and Dad have to accept that there is no legal requirement for either the child or their partner to repay the money, and parents could lose their life savings as a result.

The perils of unofficial lending became clear last year when an elderly woman lost her life savings after lending her son a 6-figure loan to buy a property. When he died, his widow argued that the money had been a gift. The Judge ruled there was no written acknowledgement of a loan by the son, and the mother, who represented herself in court, was ordered to pay ₤100,000 in legal bills.

In addition, a report by Legal and General found that the average contribution of families and friends helping their loved ones to buy a home had increased by ₤6,000 to ₤24,100, effectively making the Bank of Mum and Dad the 11th largest mortgage lender in the UK, with 1 in 5 of every property purchases being part-funded in this way.

Michelle said:- "The Bank of Mum and Dad has become increasingly important to people for a number of reasons, whether that's to get on the housing ladder, extend a property, go to university or even to fund a year out. However, situations can quickly change, and what initially seemed like a straightforward loan can suddenly become an expensive legal battle as parents try and claw their money back from ex-partners of their children or other relevant parties. Creating a legal loan agreement between parents and children is a relatively straightforward process, but it's 1 that must be signed off by a solicitor in order to ensure that the money will eventually be repaid."

Key questions when lending money to children...

Here, Michelle suggests 7 key points to consider before lending money to offspring:-

1) Will they ever be able to pay it back?

It's 1 thing if you're lending your children money, say, to go to university and you'll be able to cover any shortfall on the repayments with your own earnings, but quite another if you're retired and you're lending your child a deposit for a house that they will then jointly own with their spouse or partner. Evaluate the circumstances and the probability of the loan being repaid, what you can afford to lose, and then make your offer based on those facts.

2) Do you need a legal agreement?

If it's important to you that the money is repaid, then you absolutely need a legal agreement. While most people would never expect to sue their own child, the very fact that that document has been signed will often be enough to make it clear that you're serious about repayments. A legal agreement really comes into its own, however, when a third party is involved. Say you lend your child the deposit for a home, they marry, then divorce, and the house is sold with your money still tied up in it. A legal charge can be put in place to ensure the money is returned to you rather than being split between your child and their ex. It's also important to consider what would happen in the event of a fire, or the repossession of a home.

3) What will happen if they default on the loan?

This is an important point to consider; will there ever be a penalty for defaulting on the loan? And how quickly do you expect to have it paid back? What are the repayment terms? Discuss these points with your child and then make them official with a legal agreement.

4) Are there Tax implications?

If the loan agreement involves the lender receiving interest, then they must inform HM Revenue and Customs so that it can be assessed for possible Taxation. They must also declare any interest received on their self assessment form as Taxable income.

5) Is it actually a gift, or a loan?

A sum of money up to the amount of ₤325,000 can be given as a gift without being subject to inheritance Tax – as long as the person giving the gift lives 7 years after it is given.  Alternatively, up to ₤3,000 per year can be given as a gift without it incurring any Tax, and up to ₤5,000 can be given as a wedding gift by a parent to their child.

6) Does a loan still forms part of your estate for inheritance Tax purposes?

If you die before the loan has been repaid, then it will still form part of your estate for inheritance Tax purposes. Only if the debt is waived and becomes a gift will it no longer be considered part of your estate, but you will need to live for a further 7 years from the point at which you officially waive the debt in order to avoid inheritance Tax.

7) Would it make more sense to loan the money to a trust?

By setting up a trust in the child's name and loaning money to it, the child could benefit from interest gained on the funds, but the capital would still be accessible by the parents should they need to withdraw it.