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Retirees sell homes in favour of renting

Retirees sell homes in favour of renting

Category: Retirement

Updated: 01/08/2013
First Published: 01/08/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

A study has found a large percentage of retired people are stepping off the housing ladder and moving into rented homes instead.

According to research conducted on behalf of Prudential, a quarter of retirees currently live in rented accommodation, 42% of whom have decided to sell their own homes.

The majority of people who have taken the step to place their property on the market and move into a rented home said they had done so for financial reasons, with two in five (40%) releasing funds in their homes in order to pay off existing debts.

An additional 19% claimed that they had sold their home to cover divorce or separation costs, whilst a small percentage (9%) was found to have sold their home in an effort to boost their income during their retirement years.

The ongoing challenge of raising enough money for a deposit, a dilemma still facing many young people despite the Government launching numerous schemes to assist young buyers, has seen a rising number of older relatives stepping in to help financially.

Around 7% of retirees said they had allocated a portion of the money from the sale of their property to help their children get onto the property ladder.

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