Press release -
Retirement community consumer abuse epidemic wiping out life savings across Britain
Hard hitting BBC investigation exposes critical levels of empty 'unsellable' UK retirement flats
Solutions for the semi-dependent elderly
Our rapidly ageing UK population requires that we re-evaluate traditional approaches to caring for our elderly, and by extension ourselves. As time erodes the mental and physical capabilities of our loved ones, they increasingly need help in their day to day lives. However many older people understandably reject the surrender of independence that comes from moving into a care home. Rightfully so when, with minimal assistance and support they can remain independent for decades.
Many of us are still working full time or have other unavoidable commitments when our loved ones begin to reach this stage of their lives, and as much as we want to, we may not have the capacity to give them the full support they need.
In cases where people try, out of an abundance of love, patience can wear thin because of the stress on both parties.
The seemingly ideal compromise of retirement communities first appeared in the 1990s in the UK. Independent living: older people in control of their own lives, but with help available round the clock.
Perfect.
The problem is...
Today the sector is worth an annual £10.2 billion in the UK alone. However the existing legal framework allows little to no protection for people who buy these retirement flats. Skyrocketing service charges lead to flats plummeting in value, and instead of being an asset to bequeath to offspring, the property can become a serious financial liability when inherited. The properties become unsellable. Or to quote the relative of one former resident, "like a noose around our necks."
Veteran BBC investigative reporter Angus Crawford spoke to multiple people affected in this way. Their testimonies paint a grim picture of a housing sector which, if managed intelligently, should contribute to solving many of the problems of the aforementioned ageing UK population.
For example one individual revealed that they are unable to sell their deceased mother's property despite lowering the asking price by £200,000.
As the BBC article points out, despite these flats being empty, the families who now own them are legally obliged to continue paying all associated fees. Another person spoken to by Crawford revealed that his own late mother's apartment was costing his family nearly £11,000 a year in ground rent, service charges and council tax.
The BBC found another property which had remained unsold for nine years, and one expert estimated there were around 10,000 long-term empty retirement properties across England and Wales.
Case study
The BBC spoke with Gordon Taylor, whose mother Joan bought a McCarthy Stone property (in a development called Corbett Court) for £225,000 in 2015. Joan passed on in 2024 and the property has been empty ever since, unsellable despite a current asking price of £55,000 less than Joan originally paid.
"The terms of the lease mean it can only be bought by someone over the age of 70," says Gordon. "And there have been no serious offers."
While the property is empty Gordon has to pay £11,179 per year in fees. "She probably thought she was leaving something to her offspring, only to find it's become a millstone," Gordon told the BBC.
There are 56 apartments in Corbett Court and at least 18 of them are empty.
Gordon believes, "It's a massive issue, it's a national issue; the system in this sector is obviously broken."
McCarthy Stone were approached for comment and told the BBC that a survey showed 86.5% of Corbett Court residents to be satisfied with the development.
Even though Corbett Court is 30% empty, McCarthy Stone are currently building a new development only four miles away for the over 60s.
Expert comment
Greg Wilson is the CEO of European Consumer Claims (ECC), the company taking action against errant UK retirement community developers on behalf of customers who have lost money because of what ECC sees as large scale mis-selling and corporate greed.
"This is an issue which has the potential to negatively affect us all at some point in our lives, either directly or indirectly," says Wilson. "We all have elderly relatives. We will all be elderly ourselves one day."
"The stresses involved for all parties are intense, not just for the descendants who need a solution they can trust for loved ones, but also for the elderly person involved. They want independence but are also aware they need some level of help. They want their family to look forward to spending time with them and are often terrified of feeling they could become a burden.
"Assisted Living ought to be able to remove those pressures from all involved parties.
"Sadly, a lesson I have learned from my career in consumer claims is that no matter how perfect a solution seems, if left unregulated it will always tend to be adulterated by corporate greed.
"In the UK the 85+ age group is growing faster than any other and ECC is calling on the government to take regulatory steps. An excellent start would be for Parliament to mandate a statutory footing for the ARCO Consumer Code.
"This could never be retroactive of course. But ECC are taking action to seek financial redress for anyone who feels they were misled or have unfairly lost money by purchasing a retirement community property.
"The first thing to do if you believe you have unfairly treated by a retirement community developer (or by the firms who service those properties) is to get in touch with an expert for an appraisal of your situation."
Related links
- The history of assissted living
- Explaining the ARCO Consumer Code
- Our Ageing Population | The State of Ageing 2025
- Greg Wilson reflects
- European Consumer Claims (ECC)
- ECC contact page
- Angus Crawford
- Families' debt nightmare as thousands of retirement homes stand empty
- Corbett Court
- McCarthy Stone
- Independent senior living
- Retirement home scandal that wipes out life savings
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www.americanconsumerclaims.com
www.timeshareadvicecentre.co.uk
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