What is a retirement home? Types, costs and who they suit

“Retirement home” is an everyday phrase, not a legal category. It most often means retirement housing: purpose-built flats or bungalows for people aged 55 or over, sometimes 60 or over, with shared facilities and some support, where residents live independently in their own home. Some people also use it to mean a care home, which is a different service.

At a glance

• Retirement housing is age-restricted, usually 55+ or 60+, and can be rented or bought. Most purchases are leasehold.
• Sheltered housing, retirement villages and extra care offer different levels of support within the same family of housing.
• A care home provides personal care and is inspected by the CQC. Retirement housing itself is not inspected or rated.
• Age UK gives service charges of roughly £1,500 to £3,000 a year for a one-bedroom retirement flat.
• Some leases charge a fee when the home is sold, so read the lease before you commit.

What does “retirement home” mean?

Age UK groups specialist housing for older people into three broad types: age-exclusive housing, housing-with-support and housing-with-care. A retirement home usually sits in the first two. Sheltered housing is a type of housing-with-support, and private sheltered housing is often called retirement housing. Extra care is housing-with-care.

The key point for families is that the resident holds a tenancy or lease for a self-contained home. Support is added to that home rather than replacing it. A care home works the other way round, with the person living in a room as part of a regulated care service.

What are the main types of retirement home?

The government’s planning guidance for older and disabled people sets out the categories below.

Age UK also lists Abbeyfield houses (for people aged 55 and over, with a house manager, volunteers and at least one cooked meal a day) and almshouses, where residents typically have a licence rather than a tenancy. More detail on the middle two types is in our guides to sheltered housing and retirement villages.

Who does a retirement home suit?

Independent Age describes sheltered housing as a way to live independently in a smaller, easier-to-manage home with help available in an emergency. It tends to suit people who want to downsize, reduce maintenance, be near neighbours of a similar age and have an alarm system, without needing daily personal care.

If someone already needs regular help with washing, dressing or medication, extra care housing or a care home may fit better. A free council care needs assessment can look at whether your accommodation suits your needs, and our guide to preparing for a care needs assessment explains what to expect. For a side-by-side view of the care options, see retirement homes, sheltered housing and care homes.

Can you buy, rent or part-buy?

• Rent: from a council or housing association, or privately. Age UK says private rent usually means fewer eligibility criteria and a shorter wait, but rents may be higher, and tenancies are usually assured tenancies.
• Buy: usually from a private developer or on the resale market, mostly on a lease of 99 or 125 years, with many new-build schemes on 999 years.
• Part-buy: in England, Older Persons Shared Ownership lets people over 55 buy 10% to 75% of a home and pay rent on the rest, if their household income is £80,000 a year or less (£90,000 in London).

Renting is covered in retirement flats to rent, and buying in retirement flats for sale.

How much does a retirement home cost?

Costs depend on whether you rent or buy and on the level of facilities. Age UK gives these typical figures:

• Service charge for a one-bedroom retirement flat: roughly £1,500 to £3,000 a year, rising to as much as £10,000 a year in newer schemes with 24-hour staffing, extensive communal facilities and on-site care.
• Service charge for sheltered housing rented from a council or housing association: £130 to £200 a month.
• Ground rent: zero on newly created retirement leases since 1 April 2023, but older leases can charge £50 to £300 or more a year.
• Event or transfer fee on sale: 1% or 2% in most housing-with-support schemes, and 10% or 30% in some newer schemes with extra facilities.

Our full breakdown is in how much a retirement home costs in the UK. If you are comparing with residential care, how much a care home costs sets out the fees.

What should you ask before you decide?

• What does the service charge cover, and what costs extra?
• What support and alarm system are provided, and how often is the scheme manager on site?
• What are the rules on pets, visitors and parking?
• Is there a fee when the home is sold, and how is it worked out?
• What happens if care needs rise? Is care available on site, and who provides it?
• Are there age rules on who can inherit or buy the home?

Frequently asked questions

Is a retirement home the same as a care home?

No. A retirement home usually means a self-contained flat or bungalow in an age-restricted scheme, where you live independently. A care home provides a room, meals and personal care and is inspected by the CQC. Some people use the term for either, so always ask which is meant.

What age can you move into a retirement home?

Schemes usually set a minimum age such as 55 or 60, according to Age UK. Councils and housing associations may apply their own rules, and some give extra priority to people with particular housing support needs.

Are retirement homes inspected?

The housing itself is not inspected or rated, unlike a care home. In England, the CQC regulates any personal care provided on site. Check the care provider’s inspection report if the scheme offers care, and ask about the scheme manager’s role.

Do you own a retirement home?

If you buy, you normally own a lease, not the freehold, for a fixed number of years. You may also pay ground rent, a service charge and a fee on resale. If you rent, you hold a tenancy with a council, housing association or private landlord.

Can a retirement home be inherited?

Often, but the lease may limit who can live there or require approval. Age UK advises checking lease restrictions on selling or leaving the property to a relative in your will, and checking for fees if occupancy changes.

Where to get help next

Read about care home or extra care housing if care needs are growing, or use the care glossary for unfamiliar terms. To see what help with costs may be available, try the funding checker, and to compare providers use find care. Age UK’s free Advice Line is 0800 678 1602.

Sources

• GOV.UK: Housing for older and disabled people (planning guidance)
• Age UK: Factsheet 64, Specialist housing for older people
• Age UK: Factsheet 2, Buying retirement housing
• Age UK: Sheltered housing
• Independent Age: Sheltered housing
• GOV.UK: Older Persons Shared Ownership (OPSO)

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.