What is an event fee?
An event fee is a payment that becomes due on the occurrence of an event – usually when a retirement property is resold.
In retirement housing, event fees may also be referred to as:
- Deferred management fees
- Exit fees
- Transfer fees
However, these terms do not always mean the same thing. Different fees can serve different purposes, so it is important to understand exactly how a fee works before comparing one retirement community with another.
Are all event fees the same?
No.
The term "event fee" is often used to describe different types of charges found across the retirement housing sector.
For example, some older retirement housing developments use variable service charges and sinking funds alongside an exit fee payable on resale. These fees are often charged at around 1% of the resale value and may be payable to the freeholder.
By contrast, many Integrated Retirement Communities (IRCs) use event fees as a deferred management fee, together with a fixed service charge. This allows residents to control their ongoing costs, as the operator is responsible for major works, ongoing capital expenditure and services. Many operators offer options to allow residents to pay lower ongoing monthly charges during their period of occupation.
Understanding what a fee is used for is more important than the label attached to it.
Why do Integrated Retirement Communities charge event fees?
Many Integrated Retirement Communities use event fees to spread the cost of operating and maintaining the community over a longer period.
Instead of charging higher monthly management fees, operators can defer part of their income until a property is sold.
This approach can help make ongoing living costs more affordable for residents while providing operators with funding to maintain services and facilities.
Event fees may contribute towards:
- Major repairs, refurbishment projects and capital expenditure.
- Maintenance and improvement of communal facilities.
- Staffing and operation of shared services.
- Energy costs for communal areas.
- Supporting fixed, capped or indexed management charges.
- Care, catering and amenity services that may not cover their full operating costs.
- Sales and resale administration.
Event fees are not part of the property purchase price, but can help to make the sale price of new developments more affordable, since the operator is taking a long-term view of their income. They also mean that the operator has a long-term interest in the scheme remaining attractive to new customers.
How are event fees calculated?
Event fees in Integrated Retirement Communities should be set out clearly in the lease.
In many cases, the fee increases by a fixed percentage each year of occupation, often between 1% and 2%, up to a specified maximum level.
The method of calculation should be disclosed before purchase so consumers understand how the fee may change over time.
Are event fees disclosed before purchase?
Yes.
All ARCO members must comply with the ARCO Consumer Code, which requires event fees to be disclosed at the initial enquiry stage in the ARCO Key Facts document, and further information to be provided well before a commitment is made to purchase a property.
This means that prospective residents should receive clear information about:
- Whether an event fee applies.
- How it is calculated.
- When it becomes payable.
- What the customer will receive for the fee.
Consumers should always review the lease and supporting sales information carefully before making a decision.
What does the Government say about event fees?
The Government has recognised that event fees can play a useful role in funding retirement housing services and facilities.
It has stated that event fees can help fund ongoing services relied upon by residents and can contribute to making retirement housing with additional facilities more affordable.
The Leasehold and Freehold Reform Act 2024 introduced several important changes relating to event fees, including:
- Creating a statutory definition of event fees for the first time.
- Bringing most event fees within the framework for fixed service charges.
- Confirming that event fees are distinct from administration charges and estate management charges.
The Act defines an event fee as a payment linked to a lease of age-restricted housing that becomes payable when specified events occur, such as a sale, assignment, termination of a lease, or a change of occupation. We expect these changes to come into force in the next 12 months.
In 2026, following consultation on leasehold reform, the Government also confirmed plans for tailored annual reporting requirements for leaseholders who pay both fixed service charges and event fees, including information about the nature of those fees.
Do event fees make retirement properties harder to sell?
No. In fact, the opposite is true: independent evidence shows that in the long run average price inflation for Integrated Retirement Communities with a Deferred Management Fee has outperformed the wider UK housing market.
There are two principal ways in which event fees support resale prices. First, they can improve affordability by reducing monthly charges, which increase the number of potential buyers who can afford the property.
Second, event fees form an important part of operators' long-term income, operators also have a strong incentive to:
- Maintain properties to a high standard.
- Invest in communal facilities.
- Support successful resales.
In practical terms, operators benefit when communities remain attractive places to live and when homes can be resold successfully.
In short: event fees give operators of Integrated Retirement Communities significant ‘skin in the game’ when it comes to the resale outcomes their customers achieve.
Key Facts About Event Fees
Myth: All event fees are the same.
Fact: Different retirement housing models use different types of fees for different purposes.
Myth: Event fees are hidden charges.
Fact: ARCO members must disclose event fees clearly before purchase under the ARCO Consumer Code.
Myth: Event fees are not recognised in law.
Fact: Event fees were formally defined in legislation through the Leasehold and Freehold Reform Act 2024.
Myth: Event fees make homes impossible to sell.
Fact: Event fees are widely used in the Integrated Retirement Community sector and support affordability, maintenance and long-term management of communities.