Hamptons[i] who predicts the number of renters over 65 will grow from approximately 400,000 over 65 households today, to more than 1,000,000 by 2033.
Following this trend, Dominic Stead, Property Director at My Future Living said he expects renting in a retirement development to become a more popular choice in the future too.
Dominic said: “There are lots of benefits to renting in later life including the opportunity to downsize and free up capital from the sale of a home which can help fund retirement, as well as living maintenance free and not having to worry about an unexpected repair bill.
“With the cost-of-living crisis continuing to bite into pension income this can be a financially savvy move. Retirement developments can be a more affordable option for renters, compared with the private rental sector, plus they offer a warm and friendly community to live in which can be something people want as they age.”
Hamptons also point to rising rents, with the average rent on a newly let property in the UK rising to £1,273 pcm in June, an increase of £110 pcm or 9.4% compared to the same period last year, the sixth strongest annual rent increase since their records began in 2014.
In contrast, My Future Living features more affordable rental apartments in retirement developments throughout the UK, with monthly rents starting from just £675 per calendar month. Another key benefit of renting in a retirement development is that assured ‘lifetime’ tenancies are available, which means people can stay as long as they wish, as long as they keep to the terms of their lease.
Dominic adds: “An assured tenancy can be a game changer for people who may rule out renting because it has a reputation as only being temporary. Assured tenancies are uncommon in the private rental sector, so knowing that assured tenancies are available on properties in retirement developments can be a big draw for people. Once they move in, they want to feel settled and not fear the landlord could ask them to leave.”
Dutch-born retired stockbroker, 77 year old Diederik (Rik) Schmull rents a two-bedroom apartment at a retirement development in Westcliff-On-Sea. He previously owned a flat in London, but sold it in anticipation of returning to Amsterdam.
Rik was attracted to renting in a retirement community because it’s flexible, so he could quickly move back to Amsterdam if he wanted, plus the assured tenancy means that as long as he sticks to the terms of his agreement he can live there for as long as he wishes.
He says, “The assured tenancy is a real benefit. Having rented a few places on shorthold tenancies before, I ended up having to move twice at short notice. I didn’t want that to happen again, especially as I’m getting older. Having the security of tenure that I can stay as long as I want is really reassuring.
“For me it’s worked out well and I’m very happy. It’s all about independent living but with the reassurance there is help available should you need it. They do keep an eye on people especially those that live alone. Old age comes to us all and at some point it’s a sensible choice to live in a retirement community.”
To find out more about renting in a retirement development visit www.myfutureliving.co.uk