For many, homeownership has been central to financial security in later life. Today, around three-quarters of people aged 65 and over in the UK own their homes outright, reflecting decades of house price growth and a strong cultural preference for owning rather than renting.
But as retirement living evolves - and as needs shift in later life - more people are beginning to question whether buying is always the right option.
Why buying still appeals
Many retirees favour buying when they move, especially into integrated retirement communities (IRCs) such as our Audley and Mayfield Villages. It offers long-term security, control, and familiarity that appeals to many who have owned a home for 40 or 50 years.
For a generation that has accumulated housing wealth, keeping money invested in their property is often reassuring. With care costs potentially in their future, it can also feel like a financial buffer. Buying also protects against rental inflation and provides certainty over tenure - all key considerations when planning for a retirement that may span 20 or even 30 years.
Why renting is gaining traction
At the same time, it’s very clear that attitudes are starting to shift. Countries such as Germany and Switzerland see the highest rates of lifelong renting and it’s not due to the cost of purchasing brick and mortar, but rather a lifestyle choice.
Here in the UK, the proportion of private renters aged 65 and over has grown in recent years and the Pensions Policy Institute (PPI) forecasts that the number will almost treble to 17% by 2040.
Renting can offer greater flexibility, particularly for those who do not want to commit a large amount of capital upfront. It can free up equity to support lifestyle choices, help family members or provide readily accessible funds for future care needs. For some, converting maintenance costs into a single monthly payment also brings peace of mind.
A personal decision
What we do understand, though, is that there is no one-size-fits-all answer. The decision to rent or buy in retirement depends on financial circumstances, health, family priorities and personal attitudes towards risk and security.
What is clear is that today’s retirees expect choice. As retirement becomes longer and more dynamic, housing decisions must support both present needs and future flexibility - whether that means buying, renting, or keeping options open.
You can read more about IRCs, Audley owner stories, and renting in retirement on The FT website here.
Find out more about what it means to be an ARCO Approved Integrated Retirement Community.
