Retirees looking to rent, not buy

Retirees are increasingly opting to sell up and enter the private rental sector instead of downsizing, lettingagenttoday.co.uk reports.

New research by The Prudential found that the older trend for retirees to sell up and buy somewhere a little smaller after their children move out is declining. In its place, more of the over-65s are selling up altogether and moving into rented accommodation.

The Prudential surveyed retirees who were living in rented accommodation. Of these, some 42 per cent had previously owned their homes but opted to sell up. For those who made the call to rent, paying off debts was the main reason - being cited by 40 per cent of respondents - whilst others did so to boost their retirement income (nine per cent). One sixth (15 per cent) meanwhile, said their decision to rent was simply a lifestyle choice.

When looking at cost, the average retired tenant paid £423 per month, although this - of course - followed regional trends as witnessed across the larger UK housing market.

The results could prompt landlords to consider the market they are targeting when trying to find a tenant as older renters are often seen as the best for a long-term agreement that could last for years instead of months.

Commenting on the results, retirement expert at The Prudential, Stan Russell, told propertywire.com: "Renting in retirement can make financial sense and accessing property wealth to boost retirement income is a genuine solution for many. Our research shows that many retired renters are perfectly happy with this arrangement."