“Baby Boom in Renting”

The baby boomer generation have changed things in society all their lives.    Now they may be doing it again, this time in housing.    Throughout their growing up years, the Holy Grail was to own your own home.  In your working age adult years, you laboured to pay off your mortgage.  Then when almost at retirement age, you finally pay it off and own 100% of your home.

After a short sigh of relief —— You have a home which is too big for you, now the children have flown the nest.   Your property is ageing along with you and needs regular maintenance which you are less able  to do yourself.   If you live in the suburbs, or even more remotely in rural areas, the supermarkets and shops seem to have moved further away.      And finally, your fixed income makes you more aware of everyday costs now there is no earned income coming in.

The good news is that as an ever-lucky baby boomer, your property has increased enormously in value over the years and you did not have to do anything to make it happen.    You just had to be on the property ladder.     Now, you need a baby boomer paradigm change in thinking.  Your house no longer needs to be a castle, now it can be a springboard to a new downsized life.

As is often the case, housing trends in the USA preceded what happens in the UK a few years later. The hippy generation of America are beginning a new trend in retirement – not just downsizing, but renting rather than owning their homes.     According to the Tampa Bay Times, there has been a 42% growth in rental properties and interestingly 1 in 3 people have enough to buy but still decide to rent !   Home ownership in the US has dropped to 64% in recent years.    Renting an apartment in the centre of town means you can walk to the local shops or travel easily (and in the UK often freely) on public transport.    Market rents, although high, mean that property upkeep is looked after for you by the landlord.

The new ageing hippy ideal is to ‘hang loose’ and enjoy retired life to the full.    Release of the equity you have accumulated in your house gives you the means to do it.   ‘Far out man I’m on the road again’

There is more to life than bingo,  carpet slippers and rocking chairs on the porch.

This could be the start of another baby boomer revolution in society.

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3 Responses to “Baby Boom in Renting”

  1. A most intriguing blog, thoughtful, and full of promise.
    The sentiments are absolutely correct, and I only have one discrepancy with the description above, ‘The Baby Boomers years?’ allegedly what? 1946-1952 maybe 1955.
    The earlier of us who were war time babies, and baby boomers as defined above were to somewhat fortunate, the State – NHS, the state industries, mining, railways, steel, GPO, and British Gas, and the national electricity generating board and then the motor and textile industries, shipping, shipbuilding/repair: All theses industries employed large numbers of peoples in regular employment, and to some extent especially the state industries with the civil service included offered pension schemes in addition to the state pension scheme. This has enabled those who now are achieving 60 as of today to consider retirement with peace of mind and assets if they have had the good fortune to be on the property ladder.
    Poppycock I may hear you say! This is the distressing part of the story. Those born after 1956 at the latest have had to experience a changing world, both in actual terms of employment and financial security. They may have had to change employer’s at regular intervals: seek work on a worldwide basis, and not had the security of employment at a younger age to be able to obtain financial backing so that they could enter the UK Property market.
    What am I postulating?
    1/ Those wartime babies and baby boomers are now the retired sector of the UK Population, and they are using their accrued property asset in the family home to maybe do as John suggests above;
    I] downsize the family home and invest in other properties to either, help and finance their offspring on the family property ladder, or as an investment to supplement their own personal pension.
    ii] to enjoy freedom of time with spouses/family/friends, and finance holidays and pastimes of a lifetime
    2/ For those children of after 1956 popularly know as those of the ‘hippy age 1960-1980’, adult life has not been so kind, gone are the large employers who have or had large manpower requirement. This has maybe resulted in insecurity in the employment and pension guarantees for those now considering to retire in the next 10-15 years.

    The ‘state’ unless supported by a secure workforce, earning and investing time and energy into the UKPLC, will falter, and we must as a society seriously consider how we can help our fellow citizens within the wider world so we are also helping ourselves, to a more secure future.
    As the older generation WWII babies and baby boomer before 1956, we need to guide the younger generation of the UK, and our property assets need careful thought, so that our children are firstly educated, housed, and then have the benefits of a health service, not by dogma of commercialism/socialism or other restrictive theologies or ideas, that some politicians may offer..
    John has opened a careful thought for all of us with family and community responsibilities to consider, and hopefully come to a consensus of actions.

  2. Dear John, old age,
    Gently I have to remind myself, while I sit on the ‘POT’ as a sanctimonious old fool, what John has done for me and the hundreds of elderly folk, who now enjoy the fruits of living, within a retirement village or scheme conceived and run under the directorship of ‘The Extracare Charitable Trust Coventry’.
    We now are the elderly of the UK, John some 25/30 years ago with the Coventry Churches group developed the concept, which I now know as the ‘The Extracare Charitable Trust’. That is fine for me, but what about the next generation of’ golden oldies’ and their successors, who is thinking of the problems and solutions that may lie ahead.
    AS the UK within now the EU, mass migration, and movement within the EU nations: who are we the ‘BRITS’ what do we want out of the future.
    John’s blog alludes to the fact we may or do follow the US American/Canadian way of life, as English speaking peoples, with our ‘Christian values, and beliefs in what is fair and equitable? Renting for the next generation of ‘golden oldies’ may become the norm! Is that what you as an individual believe what will happen? It is intriguing and will need some answers.
    Language, what is the language of communications between the peoples of the world? Chinese/Russian/japanese/French/german/Spanish/italian/hindu/africance/ Dutch/Belgian/ Danish, Swedish/Norwegian, or may I add Gaelic and Welsh, of some other ‘BHAT’. What is the purpose of communication, by word of mouth, computers, telephone/ radio or by the written word? Is it not to be understood, and express to one and other, clearly what our ideas and beliefs in life are all about.
    The world in the past century fought two world wars, and still these ideals have not been resolved! AS A Brit I am referred to a lazy one? I speak but one language, but in many dialects ‘English’ (BHATS), and I have listened to some of the discussions concerning loss of identity, in adopting foreign ideals and languages: It is all emotional and very vexing, but I still wish to communicate my feelings and ideas with the world, so I must adjust to modern trends.
    Mass migration within the EU causes great concern, languages/creed beliefs/ and customs, are we as a nation the UK (including Wales and Scotland- and to some extent the Greater Ireland), subject to insidious change, and the fear of the unknown. Here I feel we have to look to history and the USA and Canada who have taken in the worlds migrants’ and yet kept to a mother tongue of a ‘English ‘BHAT’ (American English), and speak now as a nation. In Europe we must decide quietly and with resolve what we may wish to do?
    I am still on the ‘POT’ just about to flush the toilet and wash my hands, when I hear you ask what has this to do with John and his ideals/ideas.
    Not a lot! I like to spout: but honestly if we become a nation of renters (not shop keepers, as Napoléon once claimed), what of the British society? THE continentals are used to a way of living within rented property from the cradle to the grave: WE the Brits had certain ideas above our station and taken with us into the old Empire and colonies, that to aspire we should if possible in our dotage have at least earned enough money to purchase our own home, and then to be able to pass the asset onto our children, children’s children or some worthy cause (Not the taxman). With this in mind the current thinking for an Extracare Retirement Village, as envisaged by John, and the board of the Extracare Charitable Trust of Today, must think hard, and with a clear head!
    The future Extracare Retirement Village may contain many creeds/colour/ social standing persons, who for reasons of history and migration, speak many tongues, have many cultural beliefs, but all have a common landlord, as they all rent property in the future; if as John has predicted we follow the ‘American Dream’
    Here endeth the lesson, I now wash my hands, but share many a thought with you.

  3. Now I hear you say? Not Him again, But listen lads and lassies, I am not going to go on! I hope, but cast a few stones in the pond?
    Above amongst my ramblings I mention state run business’s, and corporations: The young of today to enable them to get on the property ladder, they can have the money, provided that sign up to a 35 year mortgage (Our day 25 years- and not after 60?) and until 85 years of age.
    Is there a moral here? who is right? The finance and banking industry including those operated managed by UK PLC Incorporated, and others operating in the City of London, are they devoid of a moral compass?
    They are chasing the green eyed monster, that ‘Mammon’ required, are we in fact, including our mutual societies trying to raise monies not to do society good? but to pay its own servants vast sums in personal returns??? It is shameful, and I feel like the ‘Gangsters’ have arrived! Being paid by bankers draft/order, and not cash, and then all business, at least the majority of it transacted by the ‘Plastic’ in our wallet’s ;purses, how can we fight, not to live but to survive??
    Trust is at the SOUL of any money or financial transaction, and Integrity, with respect in completing any transaction. The sums today are huge we may not consider a millionaire rich as in the past, but now to be a billionaire is or could be the target of dreams, we need a realisation, not devaluation but that a service charge is at the appropriate % rate, and that saving is recognised as being prudent, not for the financial industry and its servants but the orphan, widows, and elderly of our society.
    We need a new order of and a new set of rules with integrity and respect to set our own and societies moral compass on a correct course of action.
    Voting in or Out of Europe may not end this crisis: I do hope though that it will bring a few worthy souls to the political scene, with honesty and morals. Questions for you are all the countries within Europe chasing that Euro or Pound in your/our pocket, or even the might dollar, as the American financial industry lurks in the shadows? Who is Equitable, and Straight, and Upright?? I just hope you are my fellow citizen as you vote for the future of UKPLC., within or Out with Europe.
    I may not go to church, but I respect the views of faith, and the beliefs my mother and father taught us children as a family unit: Now I will have a few more moments in thought?? Good luck too you, and your thoughts.

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