An analysis into our online searching habits over the last 12 months has found an increase in retirees turning to Google to search for their new rental property – as opposed to buying:
· 950% increase in online searches on Google for ‘retirement properties to rent by the sea’
· 400% increase in online searches for ‘over 55 retirement bungalows to rent near me’
· 50% increase in online searches for ‘retirement properties to rent near me’
Nick Jones, head of retirement living at Lottie, comments: “The UK largely used to be a nation of homeowners, but we’ve seen a huge shift in the rental market recently, particularly for those searching for their new retirement home. Since the pandemic, more retirement seekers are opting for more flexibility in later life, especially for rental opportunities.
"Buying a new house is always a big decision – no matter how old you are – and especially when you’re considering downsizing in an age-exclusive community. Retirees are now looking to try before they buy because it is a huge investment.
"Generally, people are living longer; the ONS has predicted that the number of people aged 75 years and over living on their own is projected to increase by 461,000 in the 10 years to 2028. Coupled with the current cost of living crisis, many older people won’t have as much disposable income; so, renting in retirement will likely become the norm.
"Since the pandemic, the demand for flexible living for those over 65 that offers peace of mind via an all-inclusive monthly cost has significantly increased, too."
"Renting in retirement is fast becoming a suitable option for retirees: someone else takes care of the maintenance of the property and you have the flexibility to move quickly if you ever needed to. Additional investments - or selling your home - allows anyone renting in later life to support their families and loved ones."
5 things to consider before renting a retirement home:
1. Have a retirement plan
Over the last 12 months, online searches for ‘retirement planning’ on Google have increased by 85%. Don’t underestimate the importance of taking time to plan your retirement – it’ll reduce any stress and worries during retirement, and even in the years leading up to it.
The best way to plan for your retirement is to spend time finalising a budget, writing down how you’d like to spend your retirement, and most importantly, where you want to be in your later years.
2. Take the time to research
Retirement communities offer a whole new lifestyle for those looking for companionship, activities, and security – but it isn’t for everyone. When deciding whether this new lifestyle is for you, ask yourself about what’s important for you in retirement – and most importantly, don’t rush the decision.
Staying healthy and independent are integral parts of today’s later living communities – but support is there when you need it. With the multitude of retirement living homes, it’s possible to find a community that works best for you; so, take your time researching properties near you.
3. Explore your new surroundings
It’s a great idea to find out more about your potential new area – especially if you’re moving to a new place. Why not plan a few day trips to explore? You can see what parks are nearby, how close it is to transport links, and whether there are hotels close-by for your family to visit. Some retirement homes even offer on-site guest rooms – again, it’s something to ask your provider if your family are keen on visiting.
4. Compare the cost of your new home
Property prices for retirement homes will vary hugely, depending on location, size and what facilities are available.
Your decision on whether to buy or rent can be made easier by comparing the cost of your new later living property to your current home. Here you can see whether you’ll be able to comfortably afford your new retirement property.
5. Check for unexpected outgoings
Look for any unexpected costs that may arise. For instance, looking at bills, activities, and facilities - and figuring out whether these are included in the overall cost - will make understanding the overall cost of renting a retirement home far simpler.
Nick adds: “Senior housing investment is on the rise across the UK – and more providers than ever before are focusing on the rental market. According to previous research, last year saw an additional 26% increase of retirement housing available in the UK.
“There’s no denying that the rental market for retirees is on the rise; there’s more choice and flexibility for those in later life to explore. For many, property ownership is not something that people want in later life, particularly if you have been renting your entire life.
Nick concludes: "The price of retirement homes hugely varies, depending on the location in the country you’re looking at, what type of property you’re after, how many rooms you require. With more options available, anyone considering renting must research the average monthly cost in their chosen area, as well as the facilities and on-site support available."
