Most people associate renting with the younger generation, but a growing number of older people are leaving the property ladder and joining team tenant...
Life begins at 40, or so the old adage goes. But for many people, life is now beginning at 65, with a growing number of retirees selling their homes to fund a new and exciting chapter in their lives.
According to recent findings by the National Landlords Association, the number of retired renters rose by 200,000 between 2012 and 2016. In 2017, more than 19% of the rental market was made up of retirees and figures suggest that by 2025 the number could stand at 900,000. Determining factors for those opting to rent included, according to the report, the need to be nearer to family and the difficulty in looking after larger properties.
Other reasons for the upsurge were the desire to make the most of any new-found freedom, and not be tied down to one location once dependents had left the area.
Moving in later life can be daunting, especially when you are leaving a home you have lived in for many years. This is something PegasusLife has taken on board, launching a ‘try before you buy’ scheme at its Moors Nook development in Woking and at Carriages in Purley (see below).
The thinking behind the offer is to show would-be tenants just what life could be like in rented accommodation as they are encouraged to sample the delights of an on-site spa (Moors Nook) or the well-stocked honesty bar at Carriages.
“Our residents rent for a number of reasons. It could be a risk-free way of rightsizing, or it can help protect your existing home if it is a main financial asset.” - Ali Powell, chief commercial officer at PegasusLife
For many, the decision comes down to basic practicalities.
“My husband and I decided to sell our home to help our children get on the housing ladder,” says Sylvia Harris.
“We thought about buying a smaller house, but couldn’t find anything we wanted and without the children around, we weren’t sure whether we should stay in the same area or move to be nearer their new homes.
“While we were still trying to decide, we sold the house and rather than lose the sale, we decided to rent. And once we were in, we decided we quite liked it.
“The housing market seems so volatile at the moment that we are not sure we would get value for money so we are happy to stay in rented. It also provided the perfect reason to get rid of a lot of our possessions while we are still fit and happy to do it.”
Yet while there are upsides to renting, according to research by Development Economics for Scottish Widows, retired renters could face paying an average of 42% of their income in rent. So would it be possible to get back on the property ladder?
“We understand the needs of our residents may change over time,” says Ali. “That is why our rental offering can also extend to purchases with our Rent to Buy scheme.”
