This blog follows the buy-to-let market in Canterbury and the surrounding area. You'll find tips, guidance, and analysis that relates specifically to Canterbury and you'll also find properties from all the estate agents in the town on here that may make decent investments. I operate Martin & Co in Canterbury and if you're thinking of buying a property to let in Canterbury, I'm happy to offer a second opinion.
Sunday, 5 March 2017
171 Canterbury Households Occupied by OAP Renters
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 Canterbury, 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 Canterbury?
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 Canterbury at age 65 (years)
is 19.4 years for males and 21.3 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 Canterbury.The state of play is not helped by rising
living costs and ultra-low interest rates reducing returns for savers.
So, what of Canterbury?Of the 4,743 households in Canterbury, whose
head of the household is 65 or over, not surprisingly 3,318 of households were
owned (69.96%) and 1,111 (23.42%) were in social housing.However, the figure that fascinated me was
the 171 (3.61%) households that were in privately rented properties.
Anecdotal evidence, by
talking to both my team and other Canterbury property professionals is that
this figure is rising.More and more Canterbury
OAP’s are selling their large Canterbury 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 Canterbury 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.
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!