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Tuesday, 17 October 2017 12:25

More retired people opting to rent

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We stumbled across an article the other day that surprised us. According to latest figures, people of retirement age are deciding to rent property as opposed to purchasing as they have realised that there are many benefits to both them, and their families.

In fact, figures gauged from lettings firm Countrywide highlights that one in eleven rental tenants in the private domain is someone who is over the age of 60.

One of the reasons given for this relatively high number is the rise of ‘luxury retirement villages’ that are being erected up and down the country.

They offer comfortable and luxurious living for people over a certain age and many of these complexes are like mini hotels for people – hence their popularity.

Another reason given for retirement rental figures rising is because many people want to help their children get on the housing ladder. Many retired people questioned admitted that they sold their home to free up money or pass on that said property to their kids to give them a head-start in life. They then rented property with the money raised from the sale of the house.

Many people, especially those in the older generation, used to believe that renting was just a waste of cash – it lines the pockets of landlords and there is nothing to show for paying thousands of pounds annually in rent.

Others, however, are coming around to a different way of thinking.

A large portion of those questioned in the survey said that they didn’t think renting at their time of life was a waste of time and money because they had lived their life and were now able to give property to their children, which, in turn, would give them a better quality of life.

I suppose you can see where they are coming from. If you get to the age of 60 or 70 and are sat on a decent property with plenty in the bank, what’s the point in seeing family members struggle when you can do something to help? It’s not like you can take your property or your cash with you when you’re gone.

We also believe a lot of people get into the rental game at this time of life to free up equity in a property. There are also people who want finances freed up in order to enjoy what is left of their life – and again, who can blame them? Seeing some of the finest sights in the world is a dream for many and if this is possible through selling a property, making a bit of cash, and living out the rest of your days in rental accommodation, then great!

We personally believe it is only a matter of time before the number of renters in the UK exceeds the number of home owners, and, because of this, it will start to become less and less of a shock to hear of a certain demographic shifting to the rental game.

If an enjoyable life can be had through renting, whilst safe in the knowledge that your kids are set for life because of the property you have given them, we think it is a win-win for everyone.

We must warn people who are looking to go down a similar route, however, that you must do a lot of research and financial planning before making any decision about selling up and renting. The reason we urge caution and patience is because there are a lot of ifs and buts that will impact on how successful a person is with renting in this age group. Firstly, a person must ensure they have the finances to see them through until death. It sounds like a very morbid and insensitive thing to say, but it is ever so important that numbers have been crunched and there is security. The last thing a person wants is to have given up a property with a view to renting and then find that all their finances and capital have quickly become depleted - this will leave everyone in a difficult situation. People should always budget wisely. Remember people are living longer these days so contingencies will need to be in place.

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