Renting vs Buying a Retirement Property (2026)

In short: you can rent a retirement flat as well as buy one. Renting keeps your money free and is easier to leave, while buying gives you a home you own but brings a purchase price, a service charge and sometimes a fee when you sell. Most sheltered housing to rent comes from councils and housing associations, through a waiting list.

Can you rent a retirement flat?

Yes. Age UK says sheltered housing (sometimes called retirement housing) can usually be bought or rented, and there is usually a minimum age, such as 55 or 60. You can rent in two main ways:

• From a council or housing association. Age UK says most sheltered housing for rent is provided by councils and housing associations.
• From a private landlord or retirement operator. Age UK says a small amount of sheltered housing is available to rent privately. Waiting times are likely to be shorter, but rents may be higher than in social housing.

Several large retirement operators now let flats directly. For example, McCarthy & Stone and Churchill Living both offer homes to rent as well as to buy, and renters must meet the same age rules as buyers. At Churchill, at least one person must be 60 or over, with a partner aged 55 or over.

Your rights if you rent privately (England)

The rules for private renting in England changed on 1 May 2026 under the Renters' Rights Act. GOV.UK says:

• most existing assured shorthold tenancies became assured periodic tenancies on 1 May 2026, and new private tenancies from that date are assured periodic tenancies. They run on a rolling basis, with no end date;
• you can end the tenancy by giving 2 months' notice in writing;
• a landlord who wants you to leave must give a legal reason (a "ground for possession"), usually with 4 months' notice. "No fault" section 21 evictions can no longer be used;
• the rent can only go up once a year, and not in the first 12 months of a new tenancy, with at least 2 months' notice;
• a landlord can ask for no more than 1 month's rent in advance once you have signed.

McCarthy & Stone, for example, says its renters have an assured periodic tenancy and need to give 2 months' notice to leave.

Renting sheltered housing from the council or a housing association

Age UK says that in most areas the local council runs a waiting list for sheltered housing, and many housing associations fill their sheltered homes this way. Each council sets its own rules, such as the minimum age, and some give extra priority to people who need housing with support.

GOV.UK explains how council housing generally works:

• you apply through your local council and usually join a waiting list. You are not guaranteed a home;
• councils decide who is offered housing using a points or banding system based on housing need;
• some councils use "choice-based lettings", where you bid for homes you are interested in (bidding does not involve money);
• you usually only have a short time to accept an offer, and you can appeal a council's decision.

Age UK suggests asking the council for a copy of its housing allocation policy, how much priority you would get and how long you might wait.

What buying involves

GOV.UK says most flats are leasehold. You own the home for a fixed period set by the lease, and you have an agreement with the landlord (the freeholder). Age UK says there may be rules in the lease about selling the property or leaving it to a relative in your will, so check them before you buy.

When you buy, you usually pay:

• the purchase price and legal fees;
• Stamp Duty Land Tax on homes over the threshold. GOV.UK says that if it will be your only home, the rate is zero on the first £125,000, then rises in bands. You usually pay 5% on top if you own another home, so ask a solicitor how this applies if you buy before your current home is sold;
• a regular service charge for shared costs such as communal repairs, gardens, lifts, security and buildings insurance;
• possibly an exit, transfer or "event" fee when you sell or someone new moves in. Age UK says to ask about these before you decide to buy. Some operators charge them and some do not.

Costs to ask about, whether you rent or buy

Age UK says that as well as rent or mortgage payments, you have to pay Council Tax, water rates and energy bills, and you usually pay a service charge. At each scheme it suggests checking:

• how much the service charge is, and what it includes;
• whether there are extra services to pay for, and their cost;
• whether some service charges can be covered by Pension Credit or Housing Benefit;
• whether the local council can help with the cost of any care or support.

If you rent from an operator, ask who pays the service charge. McCarthy & Stone says that for its rented homes the service charge is paid by the landlord. Ask every landlord the same question, and get the answer in writing.

A middle way: shared ownership

Some operators offer Older Persons Shared Ownership, where you buy part of the home and pay rent on the rest. McCarthy & Stone, for example, offers it to people aged 55 and over on selected homes, with shares between 10% and 75%. It says that at a 75% share there is no rent to pay, and that a service charge is paid on top. Take independent advice before choosing this route.

Related guides

• McCarthy Stone, Churchill, Audley and Inspired Villages Compared
• The ARCO Consumer Code: What Protection Do You Get?
• Retirement Village Fees Explained: Service Charges, Event Fees and Exit Fees
• Deferred Management Fees: How Much Will You Really Pay?

Sources

• Renters' Rights Act overview for tenants (GOV.UK)
• Implementing the Renters' Rights Act: Social Housing (GOV.UK)
• Council housing (GOV.UK)
• Leasehold property (GOV.UK)
• Stamp Duty Land Tax: residential property rates (GOV.UK)
• What is sheltered housing? (Age UK)
• Retirement properties to rent (McCarthy & Stone)
• Older Persons Shared Ownership (McCarthy & Stone)
• How does renting work in a retirement village? (Churchill Living)