ONS Census analysis has revealed the UK’s retirement rental ‘hotspots’ showing that Tower Hamlets and Hackney in London have the highest pensioner renters with 73%. The overall figure for the London area was 36%.
Manchester provides the highest average outside of London with an approximate 50% of pensioners renting. The other UK hotspots include Norwich, Newcastle Upon Tyne and South Tyneside.
The other end of the scale shows places including Fareham, Epsom and East Dorset having the lowest percentages.
Prudential Retirement expert, Stan Russell 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.”
William Taylor, director at Martin & Co Huddersfield (Estate Agent Huddersfield, Letting Agent Huddersfield and Property Management Huddersfield) added "we manage a number of properties to pensioners and have only had great experience. Many see renting as a way to release equity in their owned home, but I think a number enjoy the simplicity."