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 OAPs are living in private rented property.
It got me thinking two things. How many of these OAPs 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 Evesham, 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 Evesham?
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 in ten rented for other reasons.
Funding retirement is important as the life expectancy of someone from Evesham at age 65 (years) is 20.0 years for males and 22.2 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 Evesham. The state of play is not helped by rising living costs and ultra-low interest rates reducing returns for savers.
Of the 2,726 households in Evesham, whose head of the household is 65 or over, not surprisingly 2,131 of these households were owned (78.17%) and 439 (16.10%) were in social housing. However, the figure that fascinated me was the 97 (3.56%) households that were in privately rented properties, looking further at the WR11 area that figure rises to 186 (2.13%).
Some Evesham OAPs are selling larger homes and renting something more manageable, allowing them to release the equity from their old home. In some cases, this equity may even be gifted to grandchildren, allowing them to get on the property ladder.
These Evesham OAP renters know that 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 even include gardening in the rent!
Evesham landlords should seriously consider low maintenance semi-detached bungalows on decent bus routes and close to doctors’ 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 person wants and needs, could prove to be your best and most profitable yet!