Rise of older ren­ters: ‘I sold at 60 and will be a ten­ant for life’

China Daily (Hong Kong) - - LIFESTYLE -

Pros and cons of rent­ing in later life

cur­rent low in­ter­est rate en­vi­ron­ment where rental costs are of­ten more ex­pen­sive than mort­gage costs”.

By sell­ing their main prop­erty, wealth­ier home­own­ers will lose their en­ti­tle­ment to the new, ad­di­tional in­her­i­tance tax ex­emp­tion — known as the “main res­i­dence nil rate band” — which started to ap­ply from April.

It of­fers in­di­vid­u­als an ad­di­tional in­her­i­tance tax al­lowance when they pass their res­i­dence to di­rect de­scen­dants.

“This could mean that some­body in rented ac­com­mo­da­tion faces a big­ger in­her­i­tance tax bill,” said Mr Con­nolly.

Mr Nor­ris said some land­lords may be con­cerned about the in­come of re­tired ten­ants, es­pe­cially those on state ben­e­fits.

How­ever, he sug­gested re­tirees were sta­ble ten­ants and of­fered “gen­uine ben­e­fits” to land­lords.

PRO­VIDED TO CHINA DAILY

It is not just the priced-out younger gen­er­a­tions who are swelling the num­ber of ten­ants.

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