Families are facing challenges trying to sell unoccupied retirement properties that were inherited from elderly relatives. One individual significantly reduced the price of his late mother’s retirement flat by £55,000 but has been unsuccessful in finding a buyer. Consequently, he is burdened with hefty annual fees while the property sits vacant.
The flat, purchased by Joan Taylor for £225,000 in Burgess Hill, West Sussex, in 2015, is part of a block exclusively for individuals over 70 years old, limiting the pool of potential buyers. Following Joan’s passing at the age of 96 in June 2024, her son Gordon Taylor has dropped the asking price to £170,000 but is still struggling to offload the property.
Gordon is now responsible for covering various expenses, including an annual service charge of £9,700, ground rent of £435, and council tax of £1,044, while the flat remains unsold. He expressed his disappointment, stating, “She probably thought she was leaving something to her offspring, only to find that it’s become a millstone.”
In a similar situation, another individual mentioned lowering the asking price of their late mother’s flat by £200,000 without receiving any offers. According to an expert, there could be approximately 10,000 unoccupied properties in privately owned retirement complexes across England and Wales.
Contrary to this trend, the Retirement Housing Group (RHG) reported that 95% of retirement properties are currently occupied. In other property news, the average house price in the UK has surpassed £300,000 for the first time, with a monthly increase of 0.7%, as reported by Halifax.
The annual property values also saw a 1.0% rise in January, bringing the average price to £300,077. Amanda Bryden, head of mortgages at Halifax, noted the market’s stability, with prices rebounding from a previous decline. However, she acknowledged the ongoing challenge of affordability for many potential buyers.
Karen Noye, a mortgage expert at wealth manager Quilter, commented on the impact of crossing the £300,000 threshold, highlighting the additional strain on first-time buyers amidst already stretched affordability levels.