Increasing numbers of wealthy older people are choosing to sell their homes and rent them back. Letting agents report that they are seeing more over-50s choosing this option.
The desire to free up cash to enjoy life is one of the reasons for this trend of selling to rent, or the fact that children have left home and the house is too big. In addition, many want to avoid the prospect of avoiding leaving their families with a large inheritance tax bill.
Many older people approaching retirement are choosing to sell commuter belt homes, reinvest some of the money, and moving back into London to rent instead.
Many are motivated by the ease of transport in London and the availability of theatres, museums and restaurants. Others move into London and rent to be nearer to children and grandchildren.
The trend is not limited to the London area, with many older people in the rest of the country choosing to sell up and rent instead.
Amelia Robins, senior letting agent at Hamptons believes inheritance tax is a big reason:
“I’m pretty sure inheritance tax is one of the main reasons why wealthier older people are turning to rent. And that’s not an issue that’s exclusive to London or the Home Counties.”
Renting has a lot of potential advantages for those in or approaching retirement it offers the flexibility of choosing where to live without having to go through the hassle of buying property. Also, it’s much easier to move elsewhere after a few months.
Older renters don’t have to worry about maintenance, as the work and costs involved with repairs will be dealt with by a landlord. In addition, if people are still paying a mortgage it may turn be cheaper in some cases to rent.
In addition, if older people want to free up cash but would prefer to remain in their own home, it is possible to sell up and rent back your own property.