News that house prices are remaining resilient, but that further interest rate rises are predicted could make now the ideal time for people to sell up, downsize and move to a rented retirement apartment, according to Dominic Stead, Property Director at My Future Living.
Last month Rightmove[i] showed that the average asking price for a home in Great Britain increased by 1.8% in May, which pushed average prices to a record high of £372,894.
However, those on variable rate mortgages or coming to the end of a fixed deal won’t welcome the news that the Bank of England is widely tipped to increase interest rates once again next week[ii] as inflation remains high.
Dominic Stead said: “Downsizing and renting in a retirement development can be a good financial decision. The sale of a house can free up capital in bricks and mortar and if people rent they no longer have to deal with any maintenance or the up keep of a home.
“Many people will have experienced their pension income not going as far, so downsizing could be an opportunity to enjoy the equity they have built up in a home in their retirement and make life a little bit easier.
“Moving to a retirement development is still about independent living but in a friendly and social community. A major benefit is assured tenancies too which give the same security of tenure as home ownership – something that is key for people selling up and renting.
“The great news is people can move into a retirement development from age 55 when many may still be paying a mortgage and working. For couples and singles alike it can be a good solution and enable a better standard of living than if they stayed as home owners.”
Robin & Val’s Story
Robin (67 years old) and Val Greenfield (64 years old) moved to a one-bedroom apartment in retirement development Waverley Court in New Milton, Hampshire just over a year ago. Val still works full time as an Activities Organiser in a Dementia Care Home and Robin is a retired actor.
Val said: “We wanted to find a home to grow old in, so we weren’t prisoners in a flat having to go up flights of stairs and we did not want to become a burden to our children. I have two elderly parents and I’ve seen the pitfalls of not making the move earlier enough in life. We thought let’s do it whilst we can make a good choice of where we want to be. This apartment came up on the ground floor and it seemed too good an opportunity to miss.
“The renting process was straightforward with no hiccups or issues. Before we moved in, the leaking tap was fixed, and the carpets were replaced and whole place was re-decorated. We’re now completely settled and have made it feel really homely. Our apartment is cosy but spacious. Even though we downsized from a two bedroom apartment, we didn’t need to get rid of lots of things as the apartment has lots of space.”
Talking about the benefits of living in Waverley Court Robin said: “We’ve got the peace of mind we’ve always wanted. It’s an ideal size for us and in a great position, close to the high street, which has a market day, and the beach. It will also so be great for our future when we get a little dog as pets are allowed and we are on the ground floor.”
Val adds: “When we both are not working there is a lot going on. The community is really friendly and there are regular coffee mornings, lovely evening events and quizzes. There are parties too for special days, and it’s really nice to know there are things to do without even going out of the front door.
“In the unlikely event that one of us is no longer here we are within a community where we already know people. I think that will be comforting for either of us. But we hope that’s a long way in the future. We both still feel young!”
They concluded that: “After 37 years of marriage, we couldn’t be happier together and we’ve now found the perfect place for the next 37 years of marriage.”
My Future Living offer rental apartments in retirement developments throughout the UK. Apartments are available on an assured ‘lifetime’ tenancy, which means people can stay as long as they wish, as long as they keep to the terms of their lease.
Developments benefit from landscaped gardens, a communal lounge to socialise in plus a 24-hour emergency alarm system in each apartment and an onsite manager on duty.
To find out more about renting a home in a retirement development visit: www.myfutureliving.co.uk
[i] https://www.rightmove.co.uk/news/articles/property-news/house-prices-hit-record-high-may-2023/
[ii] https://news.sky.com/video/interest-rates-no-alternative-to-rises-in-bid-to-bring-down-inflation-says-chancellor-12902064