New retirement age rental market revealed

by Daniel Jones

Landlords could find new revenue streams by signing tenancy agreements with retired people. Individuals and couples approaching retirement have an alternative to downsizing – the private rented sector, according to one firm that deals exclusively with renting private retirement property to over-55s throughout the UK.

Peter Girling, chairman of Girlings Retirement Rentals, believes many people are unsure about renting a property in later life, as the idea of owning a home has become "ingrained" in their minds. But this could be holding people back.

"Renting in retirement on an assured tenancy offers life-long security and can make perfect financial sense as people sell their homes, release all the capital tied up in the property and have access to this cash when they need it," explains Mr Girling.

His firm has seen new inquiries rise by a third (32 per cent) in five years, as more homeowners are thinking again about continuing to run a home and all the incumbent responsibilities and costs.

Of course, this is just one option for the new generation of so-called Wearies – Working, Entrepreneurial and Active Retirees. Many are finding new ways to supplement their income by working or running a small business. Others choose to rent a room in their home to earn some extra cash.

The rising cost of living and concerns over pension pots appears to be putting many, both in retirement and approaching the end of their professional careers, under pressure to earn money.

A survey from Friends Life revealed that of those still working, 33 per cent said they would rent out a spare room to a lodger and 29 per cent of those retired agreed.
"We're expecting the traditional image of the pensioner with slippers and rocking chair to change completely," said Martin Palmer, head of corporate benefits marketing at the firm.

"Many will not have saved adequately for a secure retirement and, with years of fiscal austerity taking their toll, by 2020 many people in their seventies simply will not be able to afford to give up working."

Published on: January 24, 2012

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