123 Stamford Households Occupied by Senior Citizen Tenants

Recent statistics published by the Office of National Statistics show that there are 267,704 private rented households in the country occupied by people aged 65 and older, meaning 4.39% of senior citizens are living in private rented property.

It got me thinking two things; How many of these senior citizens have always rented and how many have sold up and become a tenant?  In retirement, ‘selling up’ could make financial sense to the mature generation, potentially allowing them to liquidate the equity of their main home to enhance their retirement income.  I wanted to know why these older people rent and whether there was opportunity for the buy-to-let landlords?

The Prudential recently published a survey that stated nearly 6 out of 10 senior citizen tenants had never owned a home.  2 out of 10 senior citizen tenants were required to sell because of debt, nearly 1 in 10 senior citizen tenants sold their property to use the money to fund their retirement and the remaining rented for other reasons.

Funding retirement is important, as the further life expectancy of a 65 year old Stamfordian is an additional 19.2 years for males and 21.7 years for females (interesting when compared to the National Average of 18.7 years retirement for males and 21.1 years for females).  The burdens of financing a long retirement are being felt by many mature Stamfordians.  The state of play is not helped by rising living costs and ultra-low interest rates reducing returns for savers.

So, what of Stamford?  Of the 2,664 households in Stamford (where the head of the household is 65 or over), not surprisingly 1,937 were owned (72.71%) and 521 (19.56%) were in social housing.  However, the figure that fascinated me was the 123 (4.62%) households that were classed as living in privately rented properties.

Anecdotal evidence, by talking to members of my team and other local property professionals is that this figure is rising.  More and more senior citizens are selling their large Stamford and Rutland homes and renting something more manageable, therefore allowing them to release all of their equity from their old home.  This equity can be gifted to grandchildren (allowing them to get on the property ladder) or invested in plans that produce a decent income and whilst living the life they want to live.

These senior citizen tenants know they have a fixed monthly expenditure and can budget accordingly with the peace of mind that their property maintenance and the upkeep of the buildings are included in the rent.  Many landlords will also include gardening in the rent! Renting is also more adaptable to the trials of being a senior citizen - the capability to move at short notice can be convenient for those moving into nursing homes, and it doesn't leave family members panicking to sell the property to fund care-home fees.

Stamford landlords should seriously consider low maintenance semi-detached bungalows on decent bus routes and close to doctor’s surgeries as a potential investment strategy to broaden their portfolio.

 

Get it right and you will have a wonderful tenant, who if the property offers everything a mature tenant wants and needs, will pay top dollar in rent!

  

If you would like a FREE SALES OR RENTAL VALUATION please get in touch.  We are here to help you buy, sell, rent and manage your homes and property investments.


David Crooke
david@upp-property.co.uk

Owner

 

Understanding People & Property

SALES & LETTING AGENTS

 

Stamford: 01780 484 554      Oakham: 01572 725 825