Why more of us are choosing to rent in retirement

By Peter Girling - 13/03/2007

Renting in retirement is gaining momentum. We are now seeing a rise in demand of people choosing to rent rather than buy in retirement. Often the prospect of taking on another mortgage for many retired people is considered too risky and expensive and the high prices of many retirement properties on the market today are putting off buyers.

As we move further into 2007, I expect the demand for our services at Girlings to be greater than in years before. More and more people are now realising the benefits of renting on an Assured Tenancy. An Assured Tenancy provides the security of having a home for life, without the financial ties. It is the only rental contract that gives tenants the security of choosing how long they remain in a property without having to tie up capital.

Currently, approximately 60% of people approaching Girlings are homeowners looking to rent. By choosing to sell and downsize their home, they will reap the financial benefits. By releasing and investing the capital from their homes, they will enjoy a greater financial freedom as well as be free from the burden of owning a property.

The UK has an ageing population. Life expectancy is rising. The Office for National Statistics state that figures show that there were 20.0 million people aged 50 and over in the UK in 2003. This was a 45% increase over five decades, from 13.8 million in 1951. The number is projected to increase by a further 36% by 2031, when there will be 27.2 million people aged 50 and over. It can be seen from these statistics that the potential demand for all types of retirement housing is going to increase considerably over the next few years. Currently, there is inadequate appropriate accommodation in the country being developed due to the shortage of the right sites in suitable areas and the difficulties experienced by developers in getting planning permission. Subject to these hurdles being overcome there is no doubt that the country as a whole will see demands for retirement rentals rising.

Retirement developments are for the active retired. Each potential tenant who calls Girlings will quickly learn that we provide a service that is tendered to the needs of each individual. People who decide to rent through Girlings will immediately recognise that renting is a simple process. All apartments are purpose-built and our monthly rental rate includes service charges and ground rent costs.  Consequently tenants will enjoy a secure and convenient way of living. Any rental increases are in line with the Retail Price Index and capped at 6%, enabling our tenants to plan their finances and therefore live within their means.

To take up an Assured Tenancy is a very straightforward exercise. The agreement is written in plain English and complies with the Office of Fair Trading guidelines and there is no need for surveyors and estate agents to be involved. Girlings are members of the Association of Retirement Housing Managers, the Association of Residential Letting Agents and the National Lettings Schemes and are accredited to “Investors in People”.

So renting takes the worry away giving Girlings’ tenants just as much security as someone who has purchased a property in a retirement development. At the same time they will realise more financial freedom. Prior to Girlings commencing retirement rentals in 1990, the retirement rental market did not exist in the private sector.

To sum up, renting in retirement on an assured tenancy allows individuals the opportunity to enjoy the freedom of living in purpose built retirement homes without the need to tie up capital.

Peter Girling is Chairman of Girling Retirement Options