London and Manchester hotspots for renting in retirement

Just over a quarter of retired households in England and Wales are currently renting their home, according to new research by Prudential.

The most concentrated areas of renting retirees appear in the boroughs of Tower Hamlets and Hackney in London where 73 per cent of retired households are in rented accommodation. The overall average for London as a whole is 36 per cent.

Outside of the capital, the highest proportions of renting pensioners are in Manchester, with an almost even split between renter and home owners, and Kingston upon Hull where 47 per cent of pensioners are renting.

Castle Point in Essex and Fareham in Hampshire have the highest number of retired homeowners, with just 11 per cent of pensioners renting in the two areas.

Earlier this year Prudential released data identifying a rise in retired renters, with many homeowners selling their properties in order to turn their equity into cash to boost their retirement incomes.

Prudential retirement expert Stan Russell says the data illustrates a preference to move out of cities in retirement.

Russell says: “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 and Liverpool the number of retired homeowners is only just higher than number of retired renters.”