According to Generation Rent, a campaign group, the number of pensioners who will be in rented accommodation in 2035 is set to reach almost one million – almost three times higher than the current figure.
There are currently 370,000 people aged above 65 living in a privately rented home, and according to Generation Rent, this figure is set to soar to 995,000 in the next 20 years. The campaign group state that this is due to the difficulties faced by older people wishing to obtain a mortgage that will extend beyond retirement age. The report calls for a review of the rental sector to assist tenants who will never own their own property to have a home that is stable and more affordable.
A key factor behind the increase in number of people who will never own a property is affordability, as house prices continue to rise at a faster rate than income. Reasons for people not being able to own their own home include not being able to save a sufficient deposit and not being able to borrow the amount required to buy a property. Lenders are also reluctant to approve mortgages with terms that last until retirement and beyond.
According to Generation Rent, if all the pensioners who are anticipated to be renting during retirement claim housing benefit, it will cost the state around £3.4bn annually. Although it can be difficult to secure a mortgage as you get older, CeMAP qualified mortgage advisors know which lenders are more likely to consider you.