Older people choosing to let and sell
A growing number of older people are retiring from paying their mortgages and instead choosing to rent, claims new research out today.
According to the Homelet Rental Index, 1,074 people aged between 66 and 70 have sold their properties in order to rent over the last 12 months – a rise of 16 per cent year on year.
Homelet attributes this increase in renting to the need for older people to release equity to fund retirement.
Girlings, a retirement rentals firm, says this mirrors an increasing interest shown in its business. It has seen a 32 per cent rise in enquiries in recent years, with older tenants prioritising a lifetime tenancy agreement, which is not commonly available on the private rental market.
Peter Girling, chairman of Girlings, said: “Selling your home in later life and renting is the ultimate in equity release. With inflation rising to five per cent, the stock market in free fall and low interest rates eroding any savings potential, older people increasingly need to access capital tied up in property.
“Elderly people in Britain have £3 trillion tied up in property and many of them need this money to simply fund their living.”
Dennis and Sandra Honour recently sold their Ashford home in order to rent in Suffolk. Mr Honour said, “Renting in retirement has given us greater financial freedom and the flexibility to relocate. We sold our house and retained that capital which has given us an investment for the future.
“We are now committed to renting and we love the fact that we have an assured tenancy so we essentially have the same security as homeowners.”