WE WOULD RATHER PAY RENT!
Retirees of all ages are choosing to be tenants rather than homeowners
the demand for rental properties is soaring at retirement villages across the UK. even wealthy retirees now believe renting could be the way forward. The reason for this boom is simple. Construction costs are putting the price of retirement homes out of many people’s reach and those who can afford them would rather enjoy their money than sink it into bricks and mortar.
John Tonkiss, CeO of McCarthy Stone, reports that a third of the retirement housebuilder’s yearly reservations are now for rental.
Renting puts less pressure on people having to sell their homes, too, he argues. ‘Instead, customers can choose to “rent to rent”, where they let out their current home and rent one of ours.’
Steve Bangs, CeO at Pegasus, has clocked the shift too with communities such as Pegasus Latheram house in Cheltenham, Gloucestershire, seeing the rental community jump to 83 per cent over those buying outright.
‘The lack of choice is causing many to take a fresh look at what the rental market can offer,’ he says.
‘ We find the typical rental customer is searching for a home that both suits their current requirements but also acknowledges the need for flexibility as their circumstances change.’
Renting a onebed flat at a My Future Living development in Gosport, hants, was a godsend to retired civil servant Susan Long, 75.
She had lived in Spain for 14 years with her husband Peter, sharing a house with his cousin, when Peter suddenly died in July 2020.
Three months later, she was able to move to Norfolk house to be nearer her two daughters and five grandchildren. Something she could not have done so quickly if she had been buying a home.
‘I couldn’t afford to buy so my only choice was to rent,’ she says. ‘But I am so happy here. It was a huge adjustment being on my own after 54 years of marriage and moving back to the UK.
‘It’s not cheap but I have lovely neighbours and am never lonely.’
Retirement rentals specialists My Future Living has seen inquiries increase by 48 per cent in the past year. Rents which average £833 a month for a one-bed includes ground rent, services and maintenance.
The mid-market Retirement Villages Group, which operates 17 villages, now includes rentals in his buying mix. It is even offering two months’ free rent to new tenants who begin a contract before March 31.
Retired judge Michael Rapinet rents a home at RVG’s Thamesfield Village in henley-on-Thames, Oxfordshire, so he can go travelling and not worry about his property. Renting also frees him from the hassle of selling his home should he decide to move.
Brio Retirement Living is another good option for renters. The company has three developments across the country including Landale Court which is in the town of Chapelton. The community is on a beautiful stretch of the Aberdeenshire coastline and has one to two-bedroom properties from £850 pcm.
Karl hallows, a former director at Brio Retirement Living, which offers homes to buy, rent or party-buy/part-rent, is now a special senior- housing adviser to the United Nations. ‘ IRCs ( Integrated Retirement Communities) with health and fitness centres and other facilities cannot be exclusive,’ he says. ‘ They must be attainable and affordable to all.
‘Renting is perfect for those not yet ready to sell the family home, those who want to try before they buy, or those who simply want flexibility and security which an Assured Tenancy Agreement offers.’ Inspired Villages operates eight villages and is building a further seven this year. It offers homes to buy from £227,000, shared ownership from £163,00 and rentals from £1,300 per month.
‘We are giving new rental residents four months rentfree (Ts&Cs apply)’, says CeO Jamie Bunce. ‘ Providing options for both buying and renting homes is incredibly important to our growth plans.’
For older retirees, renting is more desirable than buying — and saves on stamp duty, legal fees and exit fees.
Beryl Tibbitts is renting for the first time at 92. The retired businesswoman lives in a McCarthy Stone apartment in Waltham Abbey in essex.
her husband died in 2003 and she ran her four-bedroom family home on her own until last summer, when she decided to downsize and rent.
‘A large house and garden takes a lot of upkeep, but with renting you have a huge amount of freedom to do what you want. I still drive. I like having the option that I can still get out and see the world if I want — even at the age of 92.’
Renting is attracting the young retiree, too. Ruiping Sun, a retired engineer from California, is renting a McCarthy Stone flat in Darlington, County Durham.
he moved with his wife and dog Watson in November after his wife was offered a two-year contract working in the UK.
‘We own a few properties in the Silicon Valley in California,’ Ruiping, 62, explains. ‘Moving to the UK for two years meant we only needed a property to rent rather than buy — and one that allowed pets. This is the ideal solution.’