More retirees will be renting in 15 years’ time, research shows
More retirees will be renting in 15 years’ time, more than double the current number, a new study reveals.
The research, carried out by life, pensions and investment provider Scottish Widows, suggests that 15 years down the line, one in eight retirees will be in rental accommodation.
However, Scottish Widows also discovered that, in order for retirees to meet their rental costs in retirement they will need to save more per month, boosting their pension contributions.
The rise of rental costs will hit people who intend to rent in retirement, particularly those who settle in London and the south-east.
Robert Cochran, spokesperson at Scottish Widows, said: “Whilst some people may choose to rent later in life, we also need to ensure it’s a more sustainable, secure option for an ageing population, many of whom will have no choice. We’re therefore urging the Government to consider ways to refine the housing market to better suit older renters through options such as open-ended tenancy, with predictable rents and protection”.
In the recent Autumn Budget, Chancellor Philip Hammond announced the government’s commitment to deliver 300,000 new homes annually until 2025. This will help bring rents down. However, there is a need for those who plan to live in rental accommodation in retirement to prepare properly financially, and for the government to intervene to make sure renting retirees can access stable, long-term tenancies.
But the results of this research are positive for private landlords and for those who plan to invest in the buy-to-let market in future.
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