Deals for First Time Morgages
A report by the all-party parliamentary group on housing and care for older people finds that at least 630,000 will be unable to afford private rents on their pension income
People’s incomes typically halve after retirement. Those in the private rented sector who pay 40% of their earnings in rent could be forced to spend up to 80% of their income on rent in retirement.
If rents rise at the same rate as earnings, the inquiry found that 52% of pensioners in the private rental sector will be paying more than 40% of their income on rent by 2038. This will mean that at least 630,000 millennials are unable to afford their rent.
They will find themselves homeless or with no choice but to move into temporary accommodation, at the state’s expense. A rather bleak prospect for many.
“The number of households in the private rented sector headed by someone aged over 64 will more than treble over the next 25 to 30 years,” said Richard Best, the chair of the group. “But unless at least 21,000 suitable homes are built a year, there will be nowhere affordable for them to live. The consequence is bound to be homelessness for some.”
The report calls for a national strategy to avoid a “crisis of pensioner homelessness”. The authors want to see least 38,000 new rental homes specifically for older people built over the next 30 years – more than 1.1 million extra homes by the late 2040s.
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