Retirement homes plummet in value

Burlington Court was built by McCarthy and Stone in Bridlington's Old Town around the peak of the housing market boom
Burlington Court was built by McCarthy and Stone in Bridlington's Old Town around the peak of the housing market boom

People who bought retirement homes at a development in Bridlington have found the value of their properties have reduced by more than half in the past decade, a BBC radio show has claimed.

Saturday’s Money Box programme on BBC Radio Four gave a national audience to the story of pensioners who moved into Burlington Court, but now find their homes are worth a fraction of what they paid for them.

The programme, which was also promoted on breakfast TV, highlighted residents who had bought their apartments for sums of around £160,000 but had made a loss of almost £100,000 on them years later.

The Burlington Court development was built off Gordon Road, in Bridlington’s Old Town by McCarthy and Stone in 2006, but last year, two of the properties sold for under £40,000.

Estate agent Nicholas Belt said the development was something of an “anomaly”, caused partly by the location.

He said: “Burlington Court has been affected worse than anywhere else. I think there were not enough parking spaces, the flats are not new any more and some of them had not been particularly well looked after.”

Mr Belt added that other similar retirement complexes in Bridlington had not seen the value of properties fall so sharply.

A spokesperson for McCarthy and Stone said: “The vast majority of our retirement apartments increase in value on resale.

“Significant improvements to the quality of our homes and service levels in the last five years has helped us achieve the highest customer satisfaction rating of any UK housebuilder, which in turn has had a further positive impact on resale values.

“It is also important to understand that the value of specialist retirement housing is not purely financial.

“It improves lives, provides peace of mind, care and support and ultimately helps older people maintain their independence.

“However, we recognise that there are a small number of cases, particularly with our older properties, where resale values of some apartments haven’t performed as we would have wished.

“This can be down to many reasons, including the performance of some local property markets.

“Unfortunately, Burlington Court is one of those cases and we are very sorry to hear of the issues experienced by some residents.  

“We urge anyone affected to contact our in-house resale team so we can provide them with all the support we can.”