In 2007 the number of people over the age of 60 who were privately renting homes was 254,000. Over the last ten years, this number has risen to 414,000. This rise is expected to continue so that by 2040, it is predicted that a third of people over 69 are expected to be renting their homes.
Because of this trend, a number of landlords are investing in purpose-built accommodation for elderly people.
Many people are selling their homes to release more retirement money, then living the rest of their lives in rented accommodation.
Girlings Retirement Rentals specialises in this sector. Their chief executive, Gillian Girling said:
“We’re receiving more enquiries from retired people looking to downsize from a family home and rent a manageable sized apartment in a specialist retirement development.
“Such developments are designed for older people and most come with assured lifetime tenancies.”
She added that renting can make financial sense. Capital from a home sale can be invested or can provide someone’s children with the deposit money for them to purchase their first home.
Assured tenancies provide the security in knowing that a person can stay in the property for the remainder of their life.
Commercial mortgages are available to purchase property for renting to elderly people. Loans are also available for conversion work to make buildings more accessible and provide facilities such as walk-in baths, rails and other equipment that may be required for less able people.