Recent statistics published by the Office of
National Statistics show that there are 267,704 private rented households in
the Country that are occupied by people aged 65 and older, meaning 4.39% of
OAP’s are living in private rented property.
It got me thinking two things. How many of
these OAP’s 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 in Maidenhead, 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 of Maidenhead?
The Prudential published a survey recently
that said nearly six out of ten OAP renters had never owned a home. Two out of ten OAP renters were required to
sell up because of debt, just about one in ten OAP renters sold their property
to use the money to fund their retirement and the remaining one out ten OAP
renters, rented for other reasons.
Funding retirement is important as the life
expectancy of someone from Maidenhead at age 65 (years) is 19.4 years for males
and 22.3 years for females (interesting when
compared to the National Average of 18.7 years for males and 21.1 years for
females). The burdens of financing a
long retirement are being felt by many mature people of Maidenhead. The state of play is not helped by rising
living costs and ultra-low interest rates reducing returns for savers.
So, what of Maidenhead? Of the 6,400 households in Maidenhead, whose
head of the household is 65 or over, not surprisingly 5,156 of households were
owned (80.56%) and 941 (14.70%) were in social housing. However, the figure that fascinated me was
the 178 (2.78%) households that were in privately rented properties.
Anecdotal evidence, by talking to both my team
and other Maidenhead property professionals is that this figure is rising. More and more Maidenhead OAP’s are selling
their large Maidenhead homes and renting something more manageable, 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), invested in plans that produce a
decent income and while living the life they want to live.
These Maidenhead OAP renters 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 an
OAP - 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.
Maidenhead 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!
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