New figures published by The Equity Release Research Council, have reported a 13% increase in the first quarter of this year. This is not surprising. In light of the ongoing financial crisis, greater numbers of homeowners approaching retirement age are becoming increasingly concerned about financing their retirement years. Equity release can serve to generate further income for retirement living and with many retired people relying on the state pension and the high cost of living, it is becoming an increasingly popular way of accessing vital funds.
However, there is an alternative strategy which could be adopted to ensure people can live affordably and well into retirement. Renting in retirement is one of them and can be the ultimate in equity release. When homeowners can sell their homes, they can access and invest their capital and rid themselves of some of the burdens that can come with home ownership such as maintenance costs. In a slow sale market people?s wish to move to a suitable rented retirement property can be hampered by trying to find a buyer. They could well lose the property of their choice if they cannot sell as there is a high demand for retirement properties to rent on assured tenancies. This not only prevents them from enjoying their new life in retirement but is also draining emotionally at what can be a traumatic time. There are chain breaker firms such as PXS who will buy a property at a reduced price, which enables the seller to move to their chosen property. When the property is subsequently sold some of the uplift in the sale price achieved is shared with the former owner. This can be a very useful solution for some people.
We offer purpose built retirement homes in locations throughout the UK where residents can enjoy a high standard of living at affordable rents and with maintenance bills included. All our properties are available to rent on a Life-Long (Assured) tenancy, which gives security of tenure to the resident. There are also support services such as a house manager on site and an emergency call line fitted in every apartment. Our properties are located in secure, modern developments and each have a communal sitting room and gardens for residents to enjoy and regular social activities and events taking place to ensure a ?community? feel.
We know that many older retirees who are lonely would consider downsizing if more suitable, fit for purpose, retirement properties were readily available. Many long for the companionship and social interaction of like-minded people which comes from living in retirement developments. Sadly, there is a real lack of sufficient good quality retirement properties available. We have urged Government to step up and act fast to overcome this acute shortage of quality retirement and care homes in the UK which is a disaster in the making given our ageing population. Government also need to play a role in advising and encouraging the retired to move from a large under occupied family home into more appropriate retirement housing, for example by incentivising them through the tax system to move from under-occupied homes and release ?windfall? capital to fund their retirement needs. Whilst this will not be a popular political move, it is a solution to housing and financing retirement in the future.
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