Across England and Wales, an estimated 10,000 long‑term empty retirement properties sit unsold in privately owned retirement blocks. What appears to be a niche housing issue is a growing problem for beneficiaries inheriting retirement properties. Families are expressing their struggle to sell these properties and are left with costly service charges.
What are retirement properties?
Retirement properties are purpose‑built homes designed for older residents. Often age restricted to buyers aged 55 or 60 plus. Many of these properties offer on-site management, communal facilities, and support services. However, these benefits come with a cost. Residents must pay annual service charges, ground rent and council tax which does not stop even when the property is empty.
The impact on families inheriting retirement properties
When someone dies owning a retirement property, it often passes to their family. The deceased believe they are leaving their family a valuable asset behind. However, retirement properties are showing to be a financial burden. Many heirs are reporting that they are struggling to cover the charges for properties they cannot sell. While also managing their own cost of living on top. In some cases, the terms of the lease restrict the property to buyers over the age of 70, meaning some heirs who inherit it are not even eligible to move in. As a result, may feel pressured to sell the property quickly, even at heavily reduced prices to avoid the charges.
Why people aren’t buying retirement properties?
Many people may be hesitant to purchase a retirement property due to high service charges, ground rent and restrictive leases. The age restriction limits the age group of people who can purchase and live at the properties. This reduces the pool of potential buyers, making the properties harder to sell and leaving many of them empty. Although, the Retirement Housing Group (RHG) stated that 95% of retirement properties are occupied.
The wider housing impact
Despite the ongoing housing crisis, an estimated 260,000 homes across the UK remain empty. These retirement homes are ready to be lived in, but restrictive contracts prevent families making full use of the inherited property. Instead of being utilised by the heirs or sold on promptly, many remain empty due to these limitations.
Final thoughts
These properties are not only creating financial pressure but also adding emotional strain for families who have recently experienced bereavement. This highlights the need for lease agreements to be reviewed and updated to better support those who inherit these homes. For more blogs like this, please click here.
