Retirement housing: sheltered, villages and extra care
Last checked November 2026. Offers and rules change: confirm with the provider before you rely on them.
Retirement housing is a home of your own, designed for older people, with some shared services. It ranges from sheltered flats with an alarm and a scheme manager to retirement villages and "extra care" housing with care staff on site. The purchase price is only part of the cost: service charges, ground rent and exit fees matter just as much.
The main types
| Type | What you get | Who it suits |
|---|---|---|
| Sheltered housing (also called retirement housing) | A self-contained flat or bungalow, an emergency alarm, a scheme manager or warden (often part-time), shared lounge and garden | People who are independent but want less maintenance, more security and neighbours nearby |
| Retirement village | A larger development, often with a restaurant, shop, gym or activities, and sometimes a care home on the same site | People who want a social life on the doorstep and are prepared to pay for the facilities |
| Extra care (also called assisted living or housing with care) | Your own flat with care staff on site around the clock, meals available and help that can increase as needs change | People who need regular care but do not want, or do not need, a care home |
Renting
Most sheltered housing in the UK is rented from councils and housing associations. You normally apply through your council's housing register, and places are allocated according to need. You pay rent plus a service charge. If your income is low, Housing Benefit may cover the rent and some of the service charge, and Pension Credit is worth checking at the same time.
Buying: the costs beyond the price
Retirement flats for sale are nearly always leasehold. You own the right to live in the flat for the length of the lease, and a management company runs the building. Ask for every one of the following in writing before you pay a reservation fee.
Service charge
This pays for the manager, alarm system, cleaning and heating of shared areas, gardening, buildings insurance and repairs. It is charged whether or not you use the facilities, it can rise each year, and it continues if the flat stands empty. Ask for the last three years' accounts so you can see how quickly it has gone up.
Ground rent
Some leases charge an annual ground rent on top. Check whether one applies, how much it is and whether the lease allows it to increase. The law on ground rent for newer leases has changed in recent years, so have a solicitor confirm what applies to the lease you are looking at.
Event fees (exit fees)
Many retirement leases include a fee triggered by an "event", usually when the property is sold, sub-let or sometimes when someone moves in with you. It may be called an exit fee, transfer fee or deferred management charge. It is often a percentage of the sale price or the original price, and in some retirement villages it grows for each year you stay. On a flat worth a six-figure sum, a fee of even a few per cent is thousands of pounds, and it comes out of what you or your family receive.
Resale value
Retirement flats can only be sold to people who meet the age rule, which limits the number of buyers. Some have resold for less than the original price, and some take a long time to sell, with service charges due throughout. Look up what second-hand flats in the same development have actually sold for, not just the asking prices of new ones.
Care and support charges
In extra care housing, the housing costs and the care costs are separate. Care may be arranged and means-tested by the council after a needs assessment, exactly as it would be in an ordinary home: see paying for care at home. Some schemes also charge every resident a fixed "wellbeing" or core support fee for having staff on site. Ask what it is, what it covers and whether you can choose your own care provider.
You can claim Attendance Allowance in retirement housing in the usual way.
Questions to ask on a viewing
- Is the manager on site every day, and what happens out of hours?
- Who answers the alarm, and how quickly? (Compare with a personal alarm in an ordinary home.)
- What has the service charge been in each of the last three years?
- Are there any event fees, and how are they calculated?
- Is there a lift, level access and a walk-in shower? What if I need a grab rail or other adaptation later?
Before you commit
- Use your own independent solicitor, not one suggested by the developer, and ask for a plain-English summary of the lease.
- Read our guide to downsizing costs for property tax, legal fees and removals.
The government-funded Leasehold Advisory Service (LEASE) gives free initial advice on leasehold problems in England and Wales, and Age UK publishes a factsheet on specialist housing. In Scotland, property is not sold leasehold in the same way; a factor usually manages shared areas, so ask a Scottish solicitor to explain the title conditions and factoring charges.
Common questions
Is retirement housing the same as a care home?
No. You have your own front door and your own tenancy or lease, and you come and go as you please. Care, if you need it, is arranged separately.
Will my family inherit the flat?
They inherit the lease, with its obligations. Service charges continue until it is sold, and any event fee is deducted from the proceeds. Make sure your executors know this.
What if I am unhappy with the management company?
Leaseholders have legal rights to information and to challenge unreasonable service charges. LEASE and Citizens Advice can explain the steps.