Shall I sell it or rent it out?

[Putthatbookdown]

There is no problem selling as v desirable location Basically it will give me £100000 to live off for the next 8 years (i have allowed for the worst case here ) i have somewhere else to go to which is less desirable but not bad (and rent free)bought in fact
However if I rented it out instead of selling I would get £800 pcm (less agent fees) and in the longer term it is set to go up by 4% a year But is this worthwhile considring I would have to live off it

Quite a bit of difference - if you let then ~£700 pcm after fees etc vs ~£1100 pcm (assuming some interest from that money) if you sell. If you could get by on the smaller amount then of course your capital is protected (subject to future house price movements).

Why would the rental income increase by 4% pa? That implies that other living costs will fall significantly or wages increase significantly for people to be able to afford that increase.

the 4% a year increase, whether rental or house value, is an assumption, not a guarantee.

no tenant with a brain will sign up to a tenancy with a 4% annual increase. You also have to allow for insurances, legal fees, void periods, possible non-payers etc.

Hi OP what happens after the eight years is up?