What is a retirement village? Costs, fees and how they work

A retirement village, often called an integrated retirement community, is a purpose-built development of self-contained homes for older people, with shared facilities, staff on site and personal care available if needed. Most homes are bought on a leasehold basis, so owners usually pay a service charge and, in many schemes, an event fee when the home is later sold.

At a glance

• Residents have their own front door, kitchen and lounge, plus shared facilities such as a restaurant or cafe, gym and gardens.
• Schemes covered by the ARCO Consumer Code must have staff on the premises 24 hours a day.
• Age UK gives service charges of up to £10,000 a year in newer schemes with 24-hour staffing, extensive facilities and on-site care.
• Event fees on resale are common: ARCO says they often rise by 1% to 2% for each year of occupation, up to a set maximum.
• The housing is not inspected like a care home. Personal care is regulated separately.

What is a retirement village?

There is no single legal definition, so the label is used loosely. The government’s planning guidance describes “extra care” or “housing-with-care” as purpose-built or adapted flats or bungalows with a medium to high level of care available if required, through an on-site care agency registered with the Care Quality Commission (CQC). It adds that residents have 24-hour access to support services and staff, and that meals are available. The same guidance notes that such developments are sometimes known as retirement communities or villages.

ARCO, the trade body for the sector, uses the term integrated retirement community. It describes 24/7 on-site support, a restaurant, bistro or cafe, self-contained homes and shared facilities such as gyms and gardens, with personal care at home if needed. ARCO says the average age on moving in is around 80 and the average stay is about eight years. Those figures come from the trade body itself, not an independent survey.

Is a retirement village the same as a care home?

No. In a retirement village you live in your own home, as an owner or tenant, and arrange any care through a separate agreement. A care home provides a room, meals and personal care as one package and is inspected by the CQC in England. Our guide to what a care home is explains that model, and care home or extra care housing compares the two for someone whose needs are rising.

Age UK points out that retirement housing, unlike a care home, is not inspected or rated. In England the CQC monitors schemes that provide personal care, so check the rating of the care provider separately from the housing. Age UK also describes retirement villages as large, village-style developments with facilities such as shops, restaurants, gyms and swimming pools, and says they are fairly new in the UK.

How do you get a home in a retirement village?

Age UK says you can usually buy, rent or part-buy privately. Most retirement housing is sold leasehold, typically on a lease of 99 or 125 years, and many new-build schemes offer 999-year leases. A lease shortens over time unless it is extended, so a 99-year lease has 69 years left after 30 years.

Some homes are sold through Older Persons Shared Ownership (OPSO) in England. You must be over 55, the home must be advertised under the scheme, and household income must be £80,000 a year or less (£90,000 in London). You buy between 10% and 75% of the home and pay rent on the rest. Ask the operator whether any homes are available this way. Our guide to ARCO and integrated retirement communities covers how the sector is organised.

What does a retirement village cost, and how do event fees work?

Prices depend on location, size and operator, and no verified national average exists for villages specifically, so compare any scheme with local resale prices. The recurring and exit costs are better documented.

For a wider breakdown, see how much a retirement home costs in the UK.

An event fee, also called a deferred management fee, is a charge set out in the lease and usually triggered by a resale. Operators use it to keep monthly charges lower and to pay for major works and shared facilities. ARCO says the fee often grows by a fixed percentage for each year you live there, commonly 1% to 2%, up to a maximum. The method must be in the lease, and ARCO members must disclose it at the first enquiry stage in a “Key Facts” document.

Because the fee is paid by you or your estate, it affects what your family receives. Our guide to deferred management fees in retirement properties explains the rules, the worked examples to ask for and what the law says.

What should you check before choosing a village?

• Ask for the Key Facts summary, the latest service charge budget or accounts and the size of the reserve fund. The ARCO Code requires these for covered schemes.
• Ask for a worked example of the event fee that shows how much goes to a reserve fund and who receives the money.
• Confirm whether the scheme and the specific home are covered by the ARCO Code, because Age UK notes it applies only to certain schemes run by members.
• Check who provides care, what it costs, and the care provider’s CQC rating.
• Find out what happens if you need a care home later. Most leases require you to keep paying service charges while the home is for sale.
• Have a solicitor with retirement lease experience explain the lease before you sign. Age UK advises this for every purchase.

See our care needs checklist to judge how much support you are likely to want over the next few years.

Does this differ in Scotland, Wales and Northern Ireland?

Age UK’s factsheets on retirement housing apply to England and Wales. For Scotland, Age Scotland is the point of contact, and for Northern Ireland, Age NI. Independent Age says sheltered housing is normally leasehold in England and Wales and generally freehold in Scotland, so the lease issues above may not apply in the same way there. Get local advice before relying on this guide north of the border or in Northern Ireland.

Frequently asked questions

What is the difference between a retirement village and sheltered housing?

Sheltered housing is usually flats or bungalows with a lounge, laundry and alarm, plus a scheme manager who may not be on site full time. A retirement village is larger, has more facilities and 24-hour staff, and can arrange personal care on site.

What age do you have to be to move in?

Schemes usually set a minimum age of 55 or 60, according to Age UK. The average age on moving into an integrated retirement community is around 80, according to ARCO, so many residents join well after the minimum.

Do you own a home in a retirement village?

Usually you own a lease, not the freehold. The lease runs for a fixed term, commonly 99, 125 or 999 years, and sets out the service charge, event fee, age rules and any limits on selling or letting. Read it with a solicitor before buying.

Are retirement villages regulated?

The housing is not inspected or rated. The ARCO Consumer Code is approved by the Chartered Trading Standards Institute but applies only to ARCO members. Care provided on site is regulated by the CQC in England, so check the care provider’s report separately.

Can you rent in a retirement village?

Often yes. Age UK says you can buy, rent or part-buy privately in a retirement village. Rents and terms vary by operator, so ask for the tenancy agreement and a full list of charges before committing.

Where to get help next

Use the funding checker to see what help with costs you might qualify for, and read about luxury retirement villages if you are comparing high-end schemes. When you are ready to compare care providers, find care near you. The Age UK Advice Line on 0800 678 1602 gives free housing advice.

Sources

• GOV.UK: Housing for older and disabled people (planning guidance)
• Age UK: Factsheet 2, Buying retirement housing
• Age UK: Specialist housing options for over 55s
• Age UK: Factsheet 64, Specialist housing for older people
• GOV.UK: Older Persons Shared Ownership (OPSO)
• ARCO: Event fees in integrated retirement communities, facts not myths

Reviewed by The Care Panel team on 9 November 2026. This guide is general information about care in England, not legal, medical or financial advice. Rules and rates change; check with your council or an adviser before making decisions.