Who still rents in their 40’s/50’s- What is your plan?

[Myhouseismyprison]

I live in the South East, for various reasons we have never managed to purchase our own home.

I am now in my late 40’s and DH is 50. We still have children at home who all have their lives here so unable to pick up and move somewhere cheaper just yet.

We have some savings but nowhere near enough to buy here for the house size we would need. We have rented the same house for several years but know this can change quickly and have no idea how we would afford current market rent.

I just wondered what plans people had in place for retirement? What savings accounts would be good?

You may find there are properties near you that are protected for 60+ ownership. They are usually flats, but there was even a lovely cottage near us recently. Much lower than the market rate.

I rent at 40. I’m deaf and so never progressed in my career and make very low for my industry and age group so will never save for a deposit or qualify for a single-borrower mortgage. No family either (my parents retired to their home country and had no wealth built up in the UK. Never been partnered or expect to partner up.

We’re the largely invisible ignored of the economic society.

Me. I'm in my 50s and privately rent. Lived in my current house for 18 years.

Like OP, have looked at buying but there have been difficulties for lots of reasons (when I was with ExH, we put in offers for houses in the early 2000s but were beaten by "cash buyers" during the Buy To Let frenzy). I'm now a single parent with children still resident.

I had a period of very low income (NHS, part time) but now earn much better money and was delighted to move off in work benefits 4 years ago. However, although I now have savings again, it's nowhere near enough to buy anything in the SE where I live and I keep looking in case that changes. I'd need a minimum 2 bed place. I have looked at relocating but I also have caring duties for elderly parents in SE and my friends and family are here too.

I am very worried about the future continuing as a private tenant. I have been on the housing register for the last 10 years but very few properties come up for rent and I now no longer qualify due to my income. My pension is fairly decent and I get a lump sum but again, nowhere near enough to make inroads to owning my own (small) place. It will possibly be enough to pay to continue to rent privately once I get my state pension top up but in all likelihood I will not be able to afford to retire.

It's rather anxiety inducing and I know I'm not alone. In fact, I think future governments will end up paying out a fair bit to support housing an ageing population who were unable to buy. And that will be an added tax burden for those of working age too.

I think I'll get the most basic pension credits. I have rheumatoid arthritis and can't work so no chance of me being able to make up the contributions needed. I don't claim any benefits.

The agent said the rents are going through the roof as a lot of landlords are getting out of the market because of labourers proposals around rent reform but the demand is still there. Sadly, we are an overcrowded island.

Indeed. My landlord told me he has no plans to sell up, but knowing he can and whenever he wants is worrying, so I had a look on Spareroom to see what's out there and saw there are far fewer houseshares available now than what there were when I last looked in 2019. I live in an area of a city that's really shabby, but has great transport links so I'm sure my double room would be snapped up quickly if I left and he advertised it even at £650 inclusive per month.

We have shared ownership flat in the Midlands.

Private renters are just as eligible for the housing element of UC as council/HA tenants, if their income is low enough.

I'd be wary of any flat/studio because service charges can rise beyond all expectations. Get a small house, even if you have to move north.

I checked and I think I have about 20 years' worth of contributions. The cost to top it up was thousands which I don't have. It's really worrying but there's not much to be done for it unfortunately.

@MetaniumWhereAreYou thanks but not really. I have a house / garage load of stuff so need 2nd room for storage not to mention my working space (for now) for my new business. I cannot afford to rent a storage unit and studio right now.
A flat is a hard no - mostly due to restrictions in the lease but more so I need it for my dogs.
Hardest NO is for letting my partner take them!!! They are the main things I have left from this horrible situation and he’s not taking them from me too. They are the only things that bring me any joy right now. My situation can’t be that unusual and I do have funds to pay the rent, yet nobody will accept me (even if the agent has met me / likes me / personally recommends me to the landlord).
I got rejected again yesterday so now won’t get anywhere else in time for my completion date next week anyway.

I could have bought mine in 2010 for £17,500. I didn't because I don't agree with RTB. Although knowing I'd have paid off my tiny mortgage by now and be living in a flat that's currently worth £80,000, and not having to pay £540 a month rent forevermore does sometimes make me question my principles! (Not really, I still disagree with RTB, especially as lots of the flats near me have been bought by private LLs.)

Agree. Flats get massively stung for services charges. And cyclical improvements - they’ll suddenly want thousands to replace the roof or the windows.

We rent.late 30s. Have absolutely no way of getting on the housing ladder unless we inherit money. We have asked the in-laws for help, as they have the money to, but we have basically been told we will have to wait till they are dead. So they are going to watch us struggle on now, maybe for the next 20 years until we are then too old.

I couldn't watch my children and grandchildren struggle when i have the means to help out very easily.
I have life insurance to pass to the children because I have nothing else to leave them.

There are no council houses to rent, the local housing allowance doesn't cover the private rental market, we will never be able to give up work. Death in early old age will probably be a relief.

How come you don't qualify? You can buy back missed years. Is this something you could look into doing? For the large majority of people it's well worth it. I think they'll let you catch up on 6 most recent years.

I have utmost respect for you 🫡

'@EleanorReally

i doubt you can even get a mortgage in your 50s'

Of course you can. I sold my flat and bought a terrace house aged 52. I have a 10 year mortgage from HSBC.

I deferred my state pension for 2 years (when you got a good %age increase for doing so) and I have pre-97 and post-97 additional pension added on (wasn't allowed on to council pension scheme) so my annual state pension is just over £14,600 on which I pay income tax of just under £400 a year - it's not only a private pension that's taxed.

I agree but, in my area anyway, rents have gone up in the private sector by significant sums since 2019. A flat in my town, just a two bed newish build that is starting to look a bit 'tired' is £850.00pcm. This is the usual rent on this type of property these days. The same flat would have been £550.00pcm five or six years ago.

Shared ownership is absolutely not perfect but neither is private renting. Both are risky. Having a large mortgage can also be risky too if interest rates go up or if you lose your job.

Trying to find good quality housing in the UK is not easy, particularly after a relationship breakdown or another change in circumstances. Or if you are on a low income. I honestly don't know what the answer is.

Banks will lend up to retirement age, several lend up until 70 and some up until 75. A 50 year old has nearly 20 years of working life ahead of them so of course they can get a mortgage, just on a slightly shorter term than someone younger.

Thank you-I wasn’t sure of the numbers when state pensions came into play so didn’t want to say and not be accurate x

Renting has been going on since the dawn of time, so keep raging on about an age old practice that isn't going to end any time soon.

We bought when I was 45. Couldn't have done before that. Took us 7 years to save the 5% needed to buy a teeny place we love.

Early forties and I rent. Even if I did have the money to buy, I would have to live in a dump, because there is no way I could afford maintenance on top of taxes and a mortgage. I also don't like the idea of not being able to move within a few months. There are so many posters on here whose houses don't sell for months or years on end. What if you desperately need to downsize? I know this is tricky with renting too, but I can walk away far easily from renting than from owning.

I don't know how my situation will change or what the economy is going to do, but I am not sure that getting on the property ladder is the insurance people make it out to be. I can see scenarios where your house becomes unlivable due to storms, floods or fires. Then you'll have paid for a house and you still have nowhere to live. You can't sell damaged property either.

I'm in social housing my plan is downsizing when the kids leave but one is significantly sen so I might always have him

My grandparents did this. They ended up priced out of the rental market when they both retired. They got an emergency home from the council, which they had to pay rent for until they died. I know council rent is heavily subsidised but it took a large amount from their pensions.