Two fifths of retired renters are former homeowners who have sold their property to pay off debts or boost their income according to new research published by insurer Prudential.
The report found that 42% of retired renters are former homeowners who decided to sell their homes and rent for financial reasons, one in ten did so to boost their retirement income and some 40% apparently were ‘forced’ to do so to pay off their debts.
This last statistic is worrying. Many of our residents who come to us to rent in retirement are driven by the financial benefits renting can offer, however, for most, it is also a lifestyle choice. We tend not to hear from people who have been ‘forced’ to sell their homes and I would stress that if people find themselves in this situation they need to seek professional financial advice or contact Citizen’s Advice Bureau.
I would also add that if greater numbers are considering renting in later life, there is a need for more landlords to offer properties on assured tenancies that will give these people much needed long term security in their homes.
The majority of our residents haven’t been ‘forced to rent’. They have simply recognised that renting a property when you are in your 80s is a better decision than going on to purchase. In this way they can release all of their capital, give some to children, invest and finally sort out their affairs whilst living the life they want to live.
But there are other attractions to renting in retirement including the fact that living in a retirement community involves plenty of social activities that will help combat loneliness, support services are available should you need them, you don’t have to do any maintenance or upkeep and a house manager is on site to keep an eye out for you. Such services and benefits are also driving the rise in renting in retirement; it is not purely down to economics.
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