Retirement properties with a tenant in situ can be a smart investment.
James Adams, Head of Transactions, My Future Living
The demand for retirement housing is on the rise, creating new opportunities for property investors seeking stability and profitability.
The Office for National Statistics (ONS) anticipates a notable increase in the population of older individuals in the UK over the next 15 years.[i] .
Other data shows that in the last 40 years:
- the number of people aged 50 and over in England has increased by over 6.8 million (a 47% increase)
- the number aged 65 and over has increased by over 3.5 million (a 52% increase)
These demographic shifts are likely to further boost demand for retirement housing. Retirement apartments within established communities are affordable and more manageable in size for people as they age.
One often overlooked point is that retirement properties with tenants in situ can be a smart investment choice.
Investments with minimal fuss
This insight is supported by new analysis of buy to let properties (conducted by Lomond lettings agency group). This shows that properties with tenants in situ make good investments. However, they are rare, accounting for just 2.8% of total sales listings[iii]. Those who can locate a suitable investment opportunity could save as much as 25% on the market value of their investment.
The retirement housing market is uniquely positioned for investors to benefit from long term tenants in situ. They provide immediate rental income while also future proofing their investment, due to the thriving nature of the retirement rentals sector.
People are living longer and healthier lives. Where they live in retirement is a major consideration. For many, renting in a retirement community is a popular choice. We are seeing a growing trend for older people to downsize (or right-size) to a home that better suits their needs.
What does this mean for property investors?
With an ageing population and renting in retirement becoming more appealing, investors buying apartments in retirement communities could make substantial gains.
Our apartments offer an advantageously positioned base within notable retirement developments. Their desirable locations, coupled with easy access to necessary facilities and transport, underscore the convenience offered to tenants.
Rental income will be secure for many years with fewer gaps in tenancies.
In conclusion:
As the population ages and demand for retirement housing increases, investing in a retirement apartment with tenants in situ can be a secure and profitable opportunity. My Future Living is ideally positioned to help investors navigate this market. We currently have several retirement investment properties for sale.
For more information, please contact James Adams:
01823 793 864
[i] https://www.foundations.uk.com/uk-older-population-is-projected-to-grow-from-2021-to-2036/
[ii] https://ageing-better.org.uk/our-ageing-population-state-ageing-2023-4
[iii] https://www.propertyinvestortoday.co.uk/breaking-news/2024/7/why-a-buy-to-let-with-a-tenant-in-situ-can-be-a-great-investment