Plunging house prices and rising service costs are disproportionately hitting the retirement market
When Anna Smith’s mother died, she inherited her retirement flat. But what might usually be a welcome windfall soon became a nightmare.
The flat took two years to sell, and in the meantime service charges racked up at a cost of £4,500 a year.
Although her mother bought the flat 10 years ago for £220,000, Smith had to accept £155,000 to sell the McCarthy Stone flat in Stockton-on-Tees, County Durham, this month.
“The considerable decrease in the equity has really been quite shocking,” says Smith, who spoke using a pseudonym for fear of upsetting other residents trying to sell. “The major issue being flagged up by prospective purchasers has been the service charge, which is really high and going up all the time.”