Last week Insurer Prudential said two fifths of retired renters are former homeowners who have sold their property to pay off debts or boost their retirement income.
And Girlings – the UK’s largest provider of retirement rental properties on life time tenancies – is reporting a spate in the number of people choosing to rent in retirement.
Peter Girling, chairman of Girlings, said: “We have seen a rise… mainly driven by the financial benefits renting can offer.”
But he added: “If greater numbers are considering renting in later life there is a need for more landlords to offer properties on assured tenancies that will give these people much needed long term security in their homes.
“The majority of our residents haven’t been ‘forced to rent’. They have simply recognised that renting a property when you are in your 80s is a better decision than going on to purchase. In this way they can release all of their capital, give some to children, invest and finally sort out their affairs whilst living the life they want to live.”
Girling said that there were other attractions to renting in retirement. For instance living in a retirement community involves plenty of social activities that can help combat loneliness; support services are available; no maintainance or upkeep costs and a house manager is normally on site.