The UK is witnessing a significant and rapid increase in the number of people in their 60s who are renting privately, with many stating they feel they have no alternative.
A Looming Demographic Shift
Current data from the English Housing Survey indicates that only 6% of households headed by someone aged over 65 are in the private rented sector. However, this figure is projected to change dramatically. The Pensions Policy Institute (PPI) forecasts that this proportion will almost treble to 17% by the year 2040.
This trend is already visible in the market. The online rental platform SpareRoom reports that just 2.7% of its users were over 55 a decade ago. By 2024, that figure had risen to 7.1%, highlighting a clear upward trajectory.
The Reality for Older Renters
While some adapt to this new reality with a positive outlook, others find it deeply challenging. One retired renter told researchers, "It doesn’t actually bother me. I’ve got five children, so I don’t have a problem with young people." She advised viewing it as "the chance to do something new and different – not as a comedown in the world."
In stark contrast, a second renter speaking to The Guardian expressed a more common sentiment of financial pressure, stating they "hated" the idea of house-sharing but felt they had "no choice."
Significant Long-Term Implications
Anna Brain, a senior policy researcher at the PPI, explains the delayed surge. "We’re not seeing a huge increase in private renting yet, because a lot of those people had the opportunity to buy their home in the 80s and 90s," she said.
She warns that the housing challenges faced by younger people today have profound consequences. "Behind that [right-to-buy] group, you have a whole cohort of people coming through who couldn’t get social housing, didn’t have the right to buy, and then were faced with rising house prices," Brain stated.
This creates a major problem for the pension system, which assumes people retire without housing costs. "There’s a huge concern that people aren’t saving enough," Brain added. For middle-aged renters on lower incomes, saving for both current rent and future retirement costs is "incredibly difficult."
Compounding the issue is a severe lack of suitable housing. A recent Age UK report found a huge shortage of homes fit for an ageing population, with 44% of over-50s worried about accessibility in their current accommodation.
