Business
Philanthropy support to ‘generous generation’ could unlock money for society
PRO BONO Economics research estimates that there are around 230,000 people under 35 in the UK with net financial assets exceeding £100,000
Nearly all wealthy young people surveyed express a strong desire to have a positive societal impact with their money, with 88% already donating to charity
However, around 110,000 wealthy people under 35 may not have a relationship with a financial or wealth adviser at present.
New research reveals that, while a significant percentage of young people in the UK are keen to contribute to good causes, many are not receiving advice on how best to invest their money.
The research, by Pro Bono Economics (PBE)1, found that while there are around 230,000 people under 35 with net assets exceeding £100,000, roughly 110,000 of those may not be in contact with a financial or wealth adviser.2
As well as unlocking large charitable donations, providing philanthropy support for young wealthy clients would be a significant growth opportunity for financial advisers given their ability to understand and cater to the philanthropic inclinations of what PBE has coined the ’generous generation’ and build long-term relationships with the high-net-worth individuals of the future.
To address this issue PBE brought together the Financial Conduct Authority, the Treasury, and the Department of Culture Media and Sport, as well as an alliance of accredited bodies, government entities, and philanthropy experts, to enhance philanthropy training for advisers.3
An estimated £5.5 trillion is expected to be passed down to younger generations over the next 20 to 30 years – the so-called ‘Great Wealth Transfer’. Financial advisers and firms seeking to attract the business of the 230,000 under-35s who already possess net financial assets exceeding £100,000 will need to adapt.
Encouragingly, 88 per cent of wealthy young people already donate to charity and PBE found that 90 per cent of those surveyed expressed a strong desire to have a positive societal impact with their money. With this generation giving more to charity – and in greater numbers – than ever before, financial advisers will need to tap into their philanthropic instincts.4 Last year 38% donated more than £2,000 to charity last year, compared to 5% of over-55s. This makes them eight times more likely to have made a substantial gift to charity or charities. Despite straitened times, 63% of those surveyed said they would consider increasing their charitable donations, compared to 13% of over-55s.
While this generation is also more likely to seek financial advice – 78% compared to 61% of those over 55 – more than half of wealthy under-35s also indicated they would be more likely to choose a financial adviser who offers philanthropy advice.
One compelling route to engaging with younger clients and potential clients on their giving is through Donor Advised Funds, a convenient charitable giving vehicles which can be funded through cash, shares or third-party entities. Encouragingly, 65% of under 35s5 said they would be interested in investing in a DAF in the future.
Sisters Lauren Gupta and Becky Holmes founded the Helvellyn Foundation, which provides philanthropic grants to individuals and organisations involved in biodiversity and the education of young people. When they first started they found almost no philanthropic advice from financial advisers.
Becky said:
“I found that most advisers focused on just growing your money, with philanthropy always being a secondary consideration. That immediately lost me because that’s not the go-to motivation for everyone. It’s a big deal to push against the status quo – it’s very difficult to get out of that box. A lot of wealth advisers will also not talk about the impact of how money is invested for fear of offending clients, such as whether it will be to the detriment of a habitat or a community.
“My advice to people wanting to give philanthropically is to speak to foundations in the UK and other people who have had that experience before speaking to advisers.”
Lauren said:
“We all live in a society affected by global issues, and advisors need to talk about how wealth management can impact, positively or negatively, these issues. But they don’t seem to offer that, it’s presumed that you are looking to preserve and grow the wealth regardless of the impact – there’s such a protective mindset on it.
“I have also been speaking to advisers about how they engage the next generation of wealth holders, because we were not engaged by the advisers around our family. My caveat is that advice should be more holistic and impact-focused; we are probably more progressive because we didn’t get that engagement and ended up seeking more forward-thinking advice elsewhere! One thing that helped us early on was a wealth coach who talked us through the emotional as well as the planning side of wealth, which we had not seen anywhere else. To anyone thinking about giving money away, you don’t have to start big. Initially a large sum seemed scary, but now we feel more secure and are braver in what we are doing.”
David Clarke set up a project called Wealth Shared which saw 12 people decide how to spend his £100,000 inheritance.
David said:
“My mum died in 2014 and I inherited this amount of money and I had this feeling of not being comfortable with inherited wealth – I don’t think it’s how the world should work so I decided to give it away.
“I went through a thought process of wondering what to do with it, and sent out 600 letters in my local area. The task was they could do anything with the money – and they had to give it away rather than having any lasting relationship with that money – but it could go to any individual or organisation in the world. In the end the money went to organisations in the L8 postcode – an area where there’s a lot of deprivation.
“A lot more people are in a position like me and the amount of wealth inherited is going to massively increase over the coming decades. We’re also in a time where people are more socially aware. “If you’re ever in a position about what to do with the money there’s power in democratising that decision and dispersing the pressure so it’s not all on the individual.”
Nicole Sykes, Director of Policy and Communications at Pro Bono Economics and co-author of the report, said:
“This is an opportune moment for financial advisers with the Great Wealth Transfer, and the time to act is now. By championing philanthropy, advisers can ensure they remain relevant and tap into the significant good will of the generous generation.
“Firms and advisers that do not currently offer philanthropy services or limit their philanthropy offerings to the ultra-wealthy risk being left behind by demographics, demand, and by governmental action. But by evolving and embracing this challenge they can attract the next generation of clients in a competitive market and contribute to a more giving, socially-conscious society.”
Business
New development planned next to Clynderwen rail station
PLANS to site public use storage containers close to a Pembrokeshire village’s railway station have been submitted to county planners.
The application by S Fussell, through agent Gethin Beynon, seeks permission to site the 25 containers on an existing storage yard by Clunderwen railway station.
A supporting statement accompanying the application says: “The application seeks permission to site 25 containers to serve as a storage facility for a public use. The application site is located immediately to the north of the Clunderwen railway line and forms an existing storage and laydown yard.”
It adds: “The containers would all be accessed and open from the north elevation. The container frontage would be fenced off via post and rail fencing for security purposes with parking for 9 vehicles being provided. A turning head to the northwest of the site would be provided to provide accessibility to and from the storage compound. In terms of material finishes the containers would be of a conventional rectangular form and be constructed from steel.”
It says the proposal would “have a positive economic and social impact through employment construction via the development,” with minimal environmental impacts, based on the containers being sited in an existing storage and distribution yard, adding: “In terms of the proposal’s scale design and character, the modular form of the containers being adjacent to the railway line are in keeping with the immediate semi-industrial character of the area.”
The application will be considered by planners at a later date.
Business
Ceredigion sheep shed allowed to stay open as wedding venue
A CALL to allow a sheep shed once owned by Aberystwyth University to remain as a wedding venue, the applicants even having their own wedding there, has been granted by Ceredigion planners.
Dyfrig and Emily Williams, through agent JMS Planning and Development, sought retrospective planning permission for the change of use of the shed at beef and sheep farm Tanygraig Farm House Tanygraig, Llanfarian, some three miles from Aberystwyth.
The building, part of an agricultural holding once owned and operated by Aberystwyth University as a ‘learning farm,’ was partly converted to host weddings in September 2022.
A supporting statement accompanying the application, by JMS Planning, said: “The proposal seeks to formalise the change of use of an existing agricultural outbuilding to a wedding venue and associated works,” adding: “Prior to the applicant’s ownership, the agricultural holding was owned and operated by Aberystwyth University and utilised as a ‘learning farm’, whereby students would attend site and undertake studies.”
After an initial successful one-off use of the shed as their own wedding venue, the applicants pondered with the idea to keep the shed as a wedding venue.
The statement said no major work has been undertaken at the site, retaining the original character of the building, which is expected to host 15 weddings a year.
“The venue has already hosted a few weddings and has developed an excellent reputation, which is supported by the local community and local businesses many of which have benefited from the venue,” the statement said.
“Jobs, wealth and income has been created as a result of the venue, from initial construction works e.g plumbing and electrical works, to those associated with the wedding industry, which will continue moving forward. The proposal would therefore be considered a source of many jobs, including retaining jobs in existing businesses.
“Although the main occupation of the applicants will remain, they will be heavily involved with the preparation, management and promotion of the business.”
Local community council Llanfarian has raised concerns about the retrospective nature of the application, and about access to the main road for wedding traffic.
The scheme has now been granted conditional approval by Ceredigion planning officers, with conditions including restrictions on amplified music.
Business
Demand for Welsh homes surges as market sees fastest growth in three years
THE demand for homes in Wales has risen at the fastest rate since 2021, according to the latest Royal Institution of Chartered Surveyors (RICS) Residential Market Survey. The report reveals a surge in buyer enquiries as more properties enter the market.
In August, a net balance of 50% of survey respondents in Wales reported an increase in new buyer enquiries, marking the highest level of activity seen since May 2021. This uptick in demand coincides with a rise in the number of homes available for sale. A net balance of 57% of Welsh respondents reported an increase in new instructions to sell, a sharp jump from 30% in July.
With both demand and supply on the rise, it is no surprise that sales have also seen an uplift. A net balance of 30% of surveyors in Wales reported an increase in newly agreed sales in August, positioning Wales as the second-highest region in the UK, behind Northern Ireland.
Looking ahead, surveyors remain optimistic about the sales outlook, with a net balance of 12% of Welsh respondents expecting sales to increase over the next three months.
However, house prices in Wales have not followed the same upward trend. Over the last three months, a net balance of -30% of Welsh surveyors reported a fall in home prices, which is lower than the UK average, where prices were reported as flat. Welsh surveyors are also cautious about the near-term price outlook, with a net balance of -22% expecting prices to drop further over the next three months.
In the rental market, demand for lettings continued to rise in August, with 50% of Welsh surveyors reporting an increase in tenant demand. However, the supply of rental properties continued to fall, albeit at a slower rate. A net balance of -17% of respondents noted a decline in rental supply, an improvement from the -33% reported in July. With the imbalance between supply and demand persisting, a net balance of 17% of surveyors expect rents to rise over the coming months.
Anthony Filice, FRICS of Kelvin Francis Ltd. in Cardiff, commented on the sales market, saying: “Appraisals and instructions remain strong. While there are fewer viewers, they are more serious, helped by more favourable mortgage rates. Some sellers with unrealistic pricing expectations are adjusting, leading to sales at lower prices than previously achievable.”
Melfyn Williams, MRICS of Williams & Goodwin The Property People Ltd. in Anglesey, added: “The market is active but not as buoyant as before. Buyers are cautious yet still purchasing, and sellers are concerned but continuing to sell. Activity is down, which is typical for August, but overall, the market remains steady despite seasonal and economic factors.”
In the lettings sector, Paul Lucas, FRICS of R.K. Lucas & Son in Haverfordwest, noted: “Rents continue to rise as the availability of property declines. Many landlords and holiday homeowners are selling due to increased taxation and rental regulation pressures.”
On the wider UK market, RICS Chief Economist Simon Rubinsohn highlighted improved sentiment, noting, “The latest RICS survey shows a lift in buyer interest following a modest fall in mortgage rates, with stock levels also inching up. However, there is still a need for realistic pricing to finalise deals, with uncertainty around future interest rate cuts and the forthcoming Budget keeping market sentiment cautious.”
Rubinsohn added that while affordability remains a challenge in the sales market, it is even more pressing in the lettings sector. “The ongoing reduction in rental stock, as landlords downsize their portfolios, is exacerbating the imbalance in the market.”
As the housing market in Wales continues to evolve, the coming months will determine whether the current surge in demand can sustain momentum amidst broader economic uncertainties.
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