Merryn Talks Money Are UK Retirement Homes Worth the Investment? And More Housing Questions Answered
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Jul 29, 2025 Paula Higgins, CEO of HomeOwners Alliance, advocates for homeowners with insightful advice on UK housing. She dives into the pros and cons of investing in retirement apartments, emphasizing the need for critical evaluation due to high costs and declining resale values. The discussion also demystifies house auctions, highlighting essential legal diligence and buyer protections to navigate risks. Additionally, Paula touches on current market challenges, shedding light on shifts in homeowner sentiment and renovation trends.
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Consider Renting Not Buying
- Avoid buying secondhand retirement homes due to difficult resale restrictions and high fees.
- Consider renting luxury retirement housing instead to avoid long-term liabilities and selling challenges.
Downsides of Retirement Apartments
- Retirement apartments are expensive to buy and live in, often costing 17% more than standard new builds due to added services and lifestyle offerings.
- These properties can lose value, be difficult to sell, and may incur high ongoing service and exit fees, creating liabilities after the owner's death.
Hidden Costs and Restrictions
- Retirement homes often stay unsold because age restrictions limit the resale pool and independent solicitors reveal high fees and poor maintenance.
- Exit fees can range dramatically, sometimes reaching as high as 35% of the sale price, adding to financial risks.