Posts with tag: retirees

More people of retirement age looking to rent

Published On: July 27, 2016 at 9:38 am

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A new survey has revealed that there has been a sizeable increase in the number of people looking to rent a property during their retirement years.

Retirement rentals specialists Girlings Retirement Rentals believe more pensioners are looking to rent during their later years due to the benefits that renting brings.

Investment

The firm reports that a larger number of older people are seeking to downsize and subsequently sell their homes in order to rent. This enables them to release capital and use this to invest in their future.

Peter Girling, chairman of Girling Retirement Rentals, said, ‘retirement is a fresh start and a chance for people to move somewhere they’ve always dreamed of living. People come to us because we offer apartments on assured tenancies enabling them to stay as long as they want and not worry about having to leave until they chose to. Renting also frees them up from the financial burden of property ownership and maintenance, which can be a worry in later life.’[1]

In addition, the National Landlords Association reports that the number of private renters in the UK has risen by 13% since 2012 to hit roughly 220,000.

More people of retirement age looking to rent

More people of retirement age looking to rent

Hotspots

Girling Retirement states that top hotspots tend to be in seaside locations towards the south of England. Typically, these regions offer the best weather and a better quality of life.

According to Girling Retirement, the top ten most popular places to rent a property in later life are:

  • Bournemouth
  • Poole
  • Ferndown
  • Brighton
  • Weymouth
  • Bristol
  • Clevedon
  • Great Yarmouth
  • Paignton
  • Reading

[1] https://www.landlordtoday.co.uk/breaking-news/2016/7/sharp-rise-in-retirement-rentals

 

 

Rise in retirees renting in seaside locations

Published On: June 10, 2016 at 1:17 pm

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An increasing number of British retirees are choosing to rent a property by the sea, due to the soaring cost of purchasing property

Latest research from the Halifax indicates that the average price of a property in a British seaside town has risen by 32% in the last decade. This is the equivalent to £440 per month.

Retirees rental rise

The annual Halifax Seaside Town Review showed that average property prices have risen from £166,565 in 2006 to £219,386. Scottish seaside towns have led the way in terms of price growth. Fraserburgh in Aberdeenshire showed the largest increase, with property prices increasing by 139%, from £63,540 in 2006 to £151,719 in 2016.

In Macduff, typical property values doubled from £66,226 to £133,567, or 102%, over the same period. This was followed by Peterhead (95%), Cove Bay (94%) and Newtonhill (91%).

Peter Girling, chairman of Girlings Retirement Rentals, observed, ‘we have seen continual demand from people wanting to retire to the coast. House prices in popular resorts can be prohibitive and renting may prove a better financial option, which is why we are seeing more people downsizing, selling the family home and choosing to rent in a purpose built retirement complex.’[1]

‘The benefits are threefold-releasing equity in a home to invest for the future, affordable rents on assured tenancies that include property maintenance, access to services and a ready-made community and a slower and healthier pace of life. People are also free from the worry of unexpected bills and the upkeep of a home, so they have more time to make the most of their golden years,’ Girling continued.[1]

Popular South

Outside of Scotland, the greatest levels of property price growth in seaside locations has been seen in southern resorts. Mr Gilding said that the most popular areas for Halifax clients were Bournemouth, Hastings and Clacton-on-Sea.

Brighton saw the largest rise outside of Scotland, with values rising by 59% from £214, 863 to £341,235 over the decade. Other English seaside resorts to record growth in excess of 50% were:

  • Whitstable, Kent
  • Shoreham on Sea, West Sussex
  • Leigh on Sea, Essex
  • Truro, Cornwall
Rise in retirees renting in seaside locations

Rise in retirees renting in seaside locations

The most expensive seaside town was found to be Sandbanks in Poole, where the average property price is £664,655. Other expensive towns in the South West include Padstow, Dartmouth and Fowey. Outside of the South West, the most expensive towns are Aldeburgh in Suffolk and Lymington in Hampshire.

Staycation

Peter Sherrard, managing director of PropertyPriceAdice.co.uk, noted, ‘since the last recession, the so-called staycation trend has grown increasingly popular in Britain, with many people now more willing to take take a short trip on these shores instead of venturing overseas, which has increased demand for property in coastal areas.’

‘Seaside towns typically provide a high quality of life and remain popular places for people to live, while also attracting those seeking second homes or holiday properties which can place added upward pressure on property prices,’ Sherrard added.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/6/pensioners-choose-to-rent-by-the-sea-as-property-prices-soar

More over 55’s investing in buy-to-let

Published On: March 4, 2016 at 10:12 am

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Research from a leading pensions provider has indicated that 20% of over 55’s are thinking of purchasing their desired retirement home now, then letting it out until they reach retirement age.

Data from the report conducted by Prudential also found that more than half of would-be potential investors plan to use their pension savings to fund their property purchase.

‘Buy-to-let-retire’

The provider says that the trend of ‘buy-to-let-retire’ seems to be making a challenge against the more conventional route of selling up and downsizing during retirement.

Of those over the age of 55 that had already made a buy-to-let investment, almost one in three stated that had done so to secure funding for a home that would one day become theirs.

52% of people in this age group looking to, ‘buy-to-let-retire’ noted that they would think about using a lump sum from their savings to fund their investment. This follows the changes made to pension regulations that came into effect in April 2015.

Additionally, data from the research shows that some over 55’s have purchased property to pass down to a loved one. 17% of people in this age bracket said that they chose to invest in bricks and mortar for this reason.

More over 55's investing in buy-to-let

More over 55’s investing in buy-to-let

Rising popularity

Findings from the report also show that the popularity of buy-to-let among older people is growing. 29% of over 55’s surveyed said that intended to make a buy-to-let investment in the next two years. Of these, 70% said that this would be their first investment in the sector.

Stan Russell, retirement expert at Prudential, said, ‘the advent of older people opting to buy-to-let-retire is an interesting development and in a post-pension freedoms world its appeal is understandable. However, there are a number of risks involved for anyone looking to take money from their pension savings, irrespective of the reasons.’[1]

‘Before making decisions that could reduce retirement income in the future, not mention increase this year’s tax bill, it is important to make the most of the advice and guidance available. The Government’s Pension Wise service provides free and impartial guidance on accessing pension savings, while a professional financial adviser can help retirees navigate the pros and cons of using pension savings for property investment. The simplest approach for most people looking to give themselves choices and secure their ideal home when they retire is to save as much as possible into a pension as early as possible in their working life,’ he concluded.[1]

[1] https://www.landlordtoday.co.uk/breaking-news/2016/3/buy-to-let-to-retire-is-the-new-downsizing

UK mortgage industry needs to do more for older people

Published On: June 12, 2015 at 11:30 am

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The director of the International Longevity Centre-UK has called on Britain’s mortgage industry to do more for retirees who wish to take out loans for homes.

Talking at the conference organised by the Council of Mortgage Lenders, David Sinclair suggested that the industry should be wary of discriminating on the basis of age. In addition, Mr Sinclair appealed to older people to ensure that they are certain that buy-to-let is their preferred investment method.

Extension

Since the year 2010, the number and percentage of mortgages extending into retirement has risen. Research from the International Longevity Centre in 2014 showed that the average property wealth of retirees is £122,000, leading to an overall total of £1.4 trillion.[1]

Mr Sinclair feels that larger demographic trends, financial insecurity and a number of policy changes is meaning that a lot of people are needing to take their mortgage into retirement. He warns that property investment is a risk and does not guarantee a return.

‘The industry and the regulatory environment have been seemingly struggling to respond to ageing and demographic change. We are, however, very pleased to see that the industry have begun to respond to these challenges through the important work being led by the CML,’ Sinclair said in his conference address. [1]

Sinclair feels that, ‘we are living longer, our family structures are changing, we are marrying later and we are working longer. At the same time, financial insecurity will result in more people needing to borrow more and later in life.’ He also stated that, ‘we should be particularly worried about those retirees with interest only mortgages but no linked investment.’[1]

UK mortgage industry needs to do more for older people

UK mortgage industry needs to do more for older people

Freedoms

Continuing, Sinclair noted that the introduction of pension freedoms could give the buy to let sector a further boost. However, he believes that all older people should seek advice before signing any contract. He concedes that the release of equity is an attractive proposition for many looking to supplement their pension.

‘The industry needs to ensure that the income poor asset rich pensioners are well served by this market,’ Sinclair commented. ‘That said, the recent growth in the number of people aged 55 to 64 taking equity release is potentially very worrying,’ he added. [1]

 

[1] http://www.propertywire.com/news/europe/uk-property-older-buyers-2015061210622.html