There has been a sharp rise in the number of older renters over the last year, according to new research from Hamptons International.
The company reports that the number of older renters has risen by 61% since 2012, up 8% in the past 12 months alone, with around a third of these being retirees.
Hamptons International says that many retirees are choosing to swap homeownership to beat high levels of stamp duty, free up cash to help family members onto the property ladder and turn their home into a source of income.
Reflecting on the research, Jamie Turnbull, business director of Girlings Retirement Rentals, said: “Selling up and renting can be great way to free up capital in a property which can then be invested to fund retirement or help family out. Renting also saves on stamp duty. Often people are downsizing, but even smaller homes can command high stamp duty costs.
“Renting avoids this and gives people access to all the capital in their house, rather than spending some of it buying a new home. Many baby boomers are sitting on a lot of equity because of rising property prices over the past twenty years and want access to it now so they can really make the most out of their retirement.”
Girlings Retirement Rentals is among a number of firms that has also witnessed a growing trend towards renting in retirement and expect this will continue as people recognise it can be a good financial option.
Turnbull added: “Most of our properties come with assured or ‘lifetime’ tenancies, so people have the same security of tenure they would have if they owned their own home.
“This can be a big factor when deciding to rent and is why many of our residents have chosen to rent through us in a specialist retirement development.”