Fancy renting when you are retired?
Propertyfinder.com recently found a discrepancy between the aspirations of young people and how they expect to be living in retirement to their actual reality when it comes to their retiring years.
According to Girlings Retirement Options, renting property in retirement is becoming increasingly popular. Girlings Retirement Options Limited, has seen an increase of 78.5% in the number of reservations in the first half of this year, compared to the same period in 2005.
This increase can be attributed to more people recognising the financial benefits of renting in retirement on an assured tenancy basis as well as a rise in retirement property prices.
The Institute of Public Policy Research (IPPR) recently reported that one fifth of retired people living in poverty own more than £100,000 in housing wealth, amounting to 4.4% of the overall retired population having more than £77bn tied up in their homes. Many retired people are finding that they are financially better off if they release capital from their existing homes and rent.
Another factor influencing the trend towards renting in retirement is the availability of the Assured Tenancy rental through Girlings which unlike any other rental contract, provides tenants with security of tenure for life. Consequently, Girlings is currently receiving over 500 enquiries a month.
Margaret Rose James in Portsmouth chose to rent in retirement after she found that the funds she would receive from selling her existing property would not provide her and her then partner Mervyn, with enough capital to purchase a retirement home. She therefore chose to rent through Girlings in Charles Dickens Court, on an Assured Tenancy.
Margaret said, “When Mervyn and I looked for our first home together, we wanted somewhere lovely to settle down. Charles Dickens Court met all our expectations. Financially, I am also better off now as all my maintenance costs are covered in my rent and I have the security and peace of mind that I can stay here for life. Since moving here, I have been really active and I enjoy walks and browsing at antiques shows. I’m very happy here.”
Peter Girling, Chairman and founder of Girlings comments, “The majority of apartments are purpose built so tenants can enjoy an easy and convenient way of living. Renting on an Assured Tenancy where the monthly rental rate includes maintenance and ground rent costs makes financial planning easier for our tenants and provides them with the peace of mind that they have a home for life. Moreover, rental prices are guaranteed to increase only with the Retail Price Index and are capped at six per cent, making renting in retirement a much more stable option.”
