Mortgages  

More pensioners are selling their homes and renting

Taking the Office for National Statistics’ census data, the Prudential found that properties in urban areas were the most likely to be rented out as pensioners sold up and moved further out or took equity from their home to help them meet their needs in retirement.

According to the data, the London boroughs of Tower Hamlets and Hackney have the highest proportion of retired renters at 73 per cent, bringing the overall average for pensioners renting in London to just over a third - 36 per cent.

North of the Watford Gap, Manchester has the highest proportion of pensioner households that rent, with a near 50-50 split between owning and renting.

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By contrast, Castle Point in Essex has the highest proportion of pensioner homeowners, with just 11 per cent of retired households renting. Continuing the suburban and rural theme, Fareham in Hampshire (11 per cent), Epsom and Ewell in Surrey (12 per cent) and East Dorset (12 per cent) all have retired populations where fewer than one in eight pensioner households rent.

Stan Russell, retirement expert at Prudential, said: “Pensioners who choose to retire outside major cities and go where property prices are generally lower can boost their retirement incomes and reduce living costs by downsizing. Many can also maintain a higher quality of life by remaining in a home they own rather than taking on the potential extra cost of paying rent.”

Lowest proportion of retired renters

Local Authority

Number of retired households renting

Proportion of retired households renting

Castle Point

1,309

11%

Fareham

1,661

11%

Epsom and Ewell

993

12%

East Dorset

1,869

12%

Oadby and Wigston

903

13%