Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.

Report Predicts One Third of Pensioners Could Be Renting by 2044

Falling homeownership rates among working-age adults could lead to a significant increase in pensioners renting by 2044, according to research from the Pensions Policy Institute (PPI) and Association of British Insurers (ABI). The report forecasts that more than a third of pensioners could be living in rented accommodation within two decades.

The PPI and ABI's "Pensions Adequacy: Housing, Households and Auto-Enrolment" report found that 65% of people aged 45-65 are currently homeowners, which is about 15 percentage points lower than twenty years ago. In contrast, those over 65 are more likely to own their homes, while people aged 45-64, especially in lower- and middle-income brackets, are increasingly living in private or social rented housing.

The report predicts a "substantial shift away" from owner-occupation among pensioners by 2044. Specifically, it projects that the proportion of owner-occupier pensioner households will fall from 79% to 64%. Private renting among pensioner households is expected to rise from 6% to 18%, and social renting from 15% to 18%. This would mean that more than a third of pensioners could be renting their homes.

The research highlights that this trend may impact retirees' quality of life, as more pensioners face ongoing housing costs. The report notes that this could increase the risk of reduced living standards, higher exposure to poverty, and greater reliance on means-tested support such as Housing Benefit and Pension Credit.

The average age of first-time buyers has also increased, rising from 32 to 34 in England and from 33 to 35 in London over the past five years. The report states that private renters aged 35-44 would need to purchase a home soon to have a chance of paying off a mortgage before retirement. Without significant improvements in affordability or ownership rates, more people are expected to enter retirement with persistent housing costs.

For letting agents and inventory clerks, these findings suggest a growing market of older renters in both private and social sectors. The report also notes that some older homeowners may need to consider later life lending or alternative strategies to manage housing costs, though barriers such as social stigma and transaction costs remain.