Renting has always been associated with the younger generations. However, according to a recent study, there is a growing trend of people choosing to rent instead of owning their own property during their retirement years.
The study, carried out by the estate agents Hamptons International, found that the number of older renters has increased by 61% since 2012 and up by 8% in the past twelve months alone. This figure accounts for 800,000 households in the UK that are being rented by over-50s, a third of which have now retired.
The surge of renting in baby boomers could be boiled down to a variety of reasons – some simply choose to rent as they simply cannot afford a property of their own while others feel that renting a property offers more benefits than owning one. Many retirees have once owned a property, or currently own a property, but are using their assets to fund something else.
The most popular reason for people renting in their retirement was to rent their property out and capitalise on the growing demand for rental accommodation and avoid costs like stamp duty and other legal fees. This is a preferred alternative to downsizing as they can let their property to growing families while renting a smaller property of their own.
Another reason for baby boomers opting to rent is to assist their families. Many of the respondents gifted their property to their children or grandchildren to help them get on to the property ladder, while others would sell their home to help their children with a deposit for a home of their own. However, although this is a good way to help your family on to the property ladder, it’s important that parents leave enough money for themselves to pay their rent and have some aside in the event of an emergency.
Despite the various financial benefits of renting a property, many retirees are seeing a lot of personal benefits of renting. As renting a property offers a lot more flexibility and less responsibility than owning a property, tenants don’t have worry about maintenance in their home as any issues will be taken care of by their landlord or letting agency. Having a tenancy is also a lot less hassle when it comes to an individual going into a care home, as the tenant will simply have to give their notice as opposed to going through the proceedings of selling their home.
With the cost of buying a house becoming more expensive, Aneisha Beveridge of Hamptons International believes that renters will only continue to get older: “The number of over 50s renting in Great Britain has reached a record high. With younger generations much less likely to be homeowners, tenants are getting older, and an ever more diverse group of people are calling the rented sector home.”
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