BetterRetirementHousing.com reports the dismal state of retirement housing resales today, which has been taken up by BBC R4 MoneyBox.
In addition, the Elderly Accommodation Counsel, which provides a database of retirement sites around the country, claims half retirement housing sells at a loss on resale.
The issue was prompted by the dismal resale figures at Burlington Court, in Bridlington, built by McCarthy and Stone ten years ago.
Here five flats have sold for less than £50,000; 12 flats less than £60,001; and one flat sold for £36,000.
The article on www.BetterRetirementHousing.com has a full analysis and statement from McCarthy and Stone, provided earlier in the year.
Resale disaster zone: Burlington Court in Bridlington, where one flat has sold for £36,000 – Better Retirement Housing
Please follow and like us:5 flats sold for less than £50,000. 12 flats less than £60,001 The dismal state of retirement flat resales is starkly illustrated by figures from the Land Registry concerning Burlington Court in Bridlington. Five of the flats here have been sold for less than £50,000; seven of the flats have sold …
McCarthy and Stone is now selling a brand new site a couple of miles away, Chestnut Court. But will its resales fair any better than those of Burlington Court?
The company says it will because of recent improvements, including 999-year leases rather than 99-year leases.
Please read and comment on the full report on BetterRetirementHousing.com (formerly, the Campaign Against Retirement Leasehold Exploitation)
The BBC website report of its upcoming BBC R4 MoneyBox programme quotes www.BetterRetirementHousing.com saying:
“Dismal resale prices for retirement properties help explain why only 2% of over-65s live in designated retirement properties – far less than the US or Australia.
“Something is seriously wrong with the business model that these flats fall so drastically in value.
“The retirement housing sector will not expand notably until this is addressed. That would be more effective than attempting to deny that the problem exists.”
Half of new-build retirement homes sell at a loss
Around half of new build retirement homes sold during a 10-year period were later re-sold at a loss, according to exclusive research for the BBC. The research by the Elderly Accommodation Counsel charity found falls in value could be more than 50%.
McCarthy & Stone say in their defence that “The numbers do not include incentives given to the original buyers which effectively lowers the purchase price” If that is the case, perhaps a legal eagle might want to question as to whether lowering a purchase price by offering incentives might contradict Stamp Duty Tax Law (as the lower the purchase price the less stamp duty has to be paid?)