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Michael Fraser once felt fortunate to have secured a retirement flat within the beautifully maintained grounds of a Grade I listed country house in Devon. The property, a converted stable, seemed an ideal and peaceful place to settle. However, six years into living there, Fraser describes feeling entrapped in what he calls a “golden cage.” His reluctance to sell arises from concerns about receiving a fair price for the flat, compounded by rising service charges that continue to erode his financial stability.
In 2020, Fraser, an 88-year-old former schoolteacher, moved closer to his daughter by relocating to the Audley Group’s Flete House retirement village. He initially paid £140,000 for his two-bedroom flat, accompanied by an annual service charge of roughly £12,000—almost half of his pension. Since then, that charge has surged by 66%, reaching £20,000 this year. Fraser expresses frustration, noting that despite the beautiful surroundings, the value offered for the fees paid feels poor, in part because many of the promised services appear minimal or nonexistent. He worries that if he needs further care, he and his family might face untenable costs should the flat remain unsold and continue accruing fees.
Similar challenges have been reported across the country, with many retirement flats left empty due to prohibitive service charges and plunging resale values. Sarah Woods’s experience exemplifies this situation. After inheriting her late mother’s flat in Gloucestershire in 2024, Woods discovered she was unable to move in despite being over 55, as the management company deemed her too young. While the flat remains vacant, sizable service charges and ground rents continue to accumulate. Woods, who now lives hours away and rents a small bedsit, has struggled with the financial and emotional burden of managing the inherited property. The management firm, Firstport Property Management, stated that they are working with Woods but must continue to pursue fees to maintain the property.
Further evidence of the depreciation in retirement flats comes from a development in Royston, Hertfordshire, managed by McCarthy Stone, the country’s largest private retirement housing supplier. Goodes Court, a block of 52 flats, has seen 24 of its 27 sales since 2014 fall dramatically in value, with a total loss exceeding £1 million. Flats originally purchased for around £200,000 have sometimes resold for as little as £9,000. While McCarthy Stone acknowledges this decline at Goodes Court, it maintains that most of its developments retain or increase in value and that many residents enjoy their experience. Nonetheless, affected individuals like Woods and Fraser warn prospective buyers to approach retirement property purchases with caution, given the financial risks involved
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