One in four of the retired now renting. Hackney and Tower Hamlets have highest proportion at 73%

30th December 2013

More than a quarter of the retired households across England and Wales are currently renting their homes according to new research by Prudential.

Some 25% are renting across England and Wales while the London boroughs of Tower Hamlets and Hackney have the highest proportion of retired renters at 73%, bringing the overall average for London to 36%.

Outside the capital, Manchester has the highest proportion of pensioners renting, with a near 50-50 split. Castle Point in Essex has the highest proportion of pensioner homeowners, with just 11% of retired households renting.

Kingston upon Hull (47 per cent), Norwich (45 per cent), South Tyneside (42 per cent) and Newcastle upon Tyne (41 per cent) also have high proportions of retired renters.

In 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. 

Prudential research earlier this year identified a rise in retired renters, with many homeowners selling their properties in order to turn their equity into cash to boost their retirement incomes. 

Stan Russell, retirement expert at Prudential, said: “These statistics help explain why many people look to spend their retirement away from big cities. Living in a home you own can be less of a drain on your retirement income than paying rent, however with property prices in many urban areas higher than in other parts of the country, it’s no wonder that in cities such as Manchester, Hull, Newcastle, Norwich and Liverpool the number of retired homeowners is only just higher than the number of retired renters.

“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.

“However, people approaching retirement should not rely solely on regional fluctuations in the property market to be able maintain their quality of life when the time comes to stop working. The simple advice is to save as much as possible into a pension as early as possible, and to seek assistance from a financial adviser or retirement specialist to help with retirement income planning.”

Top 10 retirement rental hotspots outside London

Local authority

Number of retired households renting

Proportion of retired households renting

Manchester

16,854

50%

City of Kingston upon Hull

11,571

47%

Norwich

6,206

45%

South Tyneside

7,905

42%

Newcastle upon Tyne

10,907

41%

Harlow

3,440

41%

Liverpool

18,639

40%

Salford

9,339

40%

Gateshead

9,453

39%

Nottingham

9,528

38%

 

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%

 

Top 20 retirement rental hotspots including London 

Local authority/borough

Number of retired households renting

Proportion of retired households renting

Tower Hamlets 8,082 73%
Hackney 9,334 73%
Islington 9,031 69%
Southwark 10,837 68%
Lambeth 9,690 59%
Hammersmith and Fulham 6,798 57%
Westminster 10,275 56%
Camden 9,624 56%
Newham 7,264 54%
Kensington and Chelsea 7,134 51%
Manchester 16,854 50%
City of Kingston upon Hull 11,571 47%
Lewisham 8,519 47%
Greenwich 8,172 46%
Norwich 6,206 45%
Haringey 6,772 44%
Wandsworth 8,090 43%
City of London 342 43%
Barking and Dagenham 5,730 42%
South Tyneside 7,905 42%

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *