The number of ‘silver renters’ will treble to almost a million as people are leaving it too late to buy their first home.
Private rental household in England where the occupant is aged 65 or older is predicted to increase from 370,000 in 2015/16 to 995,000 by 2035-36, according to campaign group Generation Rent.
Analysis found that those reaching their forties without a mortgage will find it more difficult to borrow as lenders will expect them to retire before having paid it off.
Private rental household in England where the occupant is aged 65 or older is predicted to increase from 370,000 in 2015/16 to 995,000 by 2035-36, according to campaign group Generation Rent
Those who rent into retirement are significantly worse off than homeowners who have paid off their mortgages and subsequently live rent-free.
Data from the English Housing survey shows that around 1.1million 45 to 65 year olds are currently renting.
Of these, just 167,000 are expected to go on to buy their own property, analysts forecast.
David Adler, from the University of Oxford who authored the paper, said that most people were still aspirational home owners.
Just 167,000 are expected to go on to buy their own property, analysts forecast
‘The idea of home ownership is still popular among those who are starting out in renting but the longer, or worse, someone’s renting experience has been, the more likely they are to favour reform of the rental sector over an escape to owner occupation,’ he told The Telegraph.
‘As the renter population ages, this preference, and demands for reform, will only increase.”
Dan Wilson Craw, Director of Generation Rent, said: ‘With most debates on housing focused on young adults, politicians risk neglecting the vast numbers of people who are already too old to get a mortgage and face a lifetime of renting.
‘As they start retiring in greater numbers, the state will have to pick up the tab unless it makes some fundamental changes to the housing market.’