Do Retirement Flats Lose Value? What Affects Resale (2026)

In short: some retirement flats sell for less than the owner paid, and others keep or gain value. There is no official figure for how much retirement flats lose or gain. A government taskforce said in 2024 that the overall picture is unclear. It listed the factors that can make a difference, including location, the price paid when new, service charges and exit fees. You can check many of these before you buy.

What the official evidence says

The most recent official look at this is the government's Older People's Housing Taskforce, which reported in November 2024. It said:

• many retirement properties keep or increase their value over time;
• its call for evidence also heard of homes losing value when resold, whether through an estate agent or the operator, with some reported cases of losses of more than 50%;
• the overall picture is unclear and some of the evidence is out of date;
• there is not enough evidence to pinpoint why some properties do less well than others.

The taskforce pointed to a 2019 study by the Elderly Accommodation Counsel, a charity, of retirement housing sold between 1995 and 2013. It found the biggest falls were for new homes bought between 2004 and 2008. Homes first sold in 2009, 2011, 2012 and 2013 rose in value once the value of sales incentives was taken off the first price. The taskforce also said there was some more recent evidence of resale values in assisted living broadly following house prices.

The taskforce recommended that an independent body should publish a report on resale values and what drives them.

What affects the resale price

The taskforce listed these reasons why resale performance differs between developments, and even between schemes run by the same company:

• Location, including competition from newer developments nearby.
• The price paid when new. It mentioned premiums for new-build flats over resale homes, and overvaluation at first sale.
• Services and the level of service charges.
• How homes are sold, including incentives at first sale and the use of estate agents who do not specialise in retirement housing.
• Fees and charges, including event fees, which can make resale homes less attractive. It said ongoing fees can push families into rushed sales.

Other official sources describe further points that affect who can buy and what they will pay.

Age rules limit who can buy

GOV.UK says a specialist retirement property may have restricted sales clauses, for example that it can only be sold to another older person. Age UK says there may also be lease restrictions on leaving the home to a relative. Fewer possible buyers can mean a longer sale.

Service charges keep running

The taskforce said many families do not realise the service charge (and ground rent, on leases from before April 2023) must still be paid up to the point of resale, even when the home is empty. A higher service charge can also put buyers off.

Event fees

Some retirement leases charge an event fee (often called an exit fee) when the home is sold. In sample leases, the Law Commission found these ranged from 1% to 30%. In some leases the owner had to sell the home back to the freeholder at the original price, losing any rise in value. Read more in our guide to retirement villages.

Lease length

GOV.UK says that if a lease has less than 80 years to run, you may need to extend it before selling, because some lenders are reluctant to lend on shorter leases. Since 31 January 2025, the law no longer makes you own a flat for two years before you can claim a lease extension.

What the law is doing about it

No law yet controls event fees or resale prices. The Law Commission recommended in 2017 that event fees should be clearly disclosed early and limited in some cases, and the government said in 2019 it would implement most of this. In July 2026 the government said it will require landlords to set out event fees in a new annual report for leaseholders who pay them. Most of the Leasehold and Freehold Reform Act 2024 is not yet in force.

How to check before you buy

• Look up past sale prices in the development. GOV.UK has a free service to search what properties in England and Wales sold for, by address. Compare first sales with later resales.
• Ask how long recent resales took, and who sold them: the operator or an estate agent.
• Get the service charge history for the last few years, not just this year.
• Ask for the event fee in writing, with a worked example for the year you might sell.
• Check the lease for age rules, sale restrictions and the years left to run.
• Ask about incentives. If the price includes discounts or extras, ask what the home is worth without them.

A solicitor who knows retirement leases can explain the lease. Take independent financial advice if the flat will hold most of your savings.

Related guides

• How to Sell a Retirement Flat: Options and Realistic Timescales
• Part-Exchange Schemes for Retirement Property: How They Work
• Renting vs Buying a Retirement Property
• McCarthy Stone, Churchill, Audley and Inspired Villages Compared

Sources

• Our Future Homes: the Older People's Housing Taskforce report (GOV.UK, 2024)
• How to sell a home (GOV.UK)
• Search sold property prices (GOV.UK)
• Event Fees in Retirement Properties, Law Com No 373 (Law Commission, 2017)
• Event fees in retirement properties: project page (Law Commission)
• Government response: strengthening leaseholder protections over charges and services (GOV.UK, July 2026)
• Leasehold and Freehold Reform Act 2024 (Commencement No. 2) Regulations 2025 (legislation.gov.uk)
• Sheltered housing (Age UK)