Rented homes to create pensioner funding gap
AGEING millennial renters will present the government with a major fiscal challenge in future years, the Resolution Foundation has warned.
Half of millennials will still be renting in their forties and a third could still be renting by the time they claim their pensions, the think tank has claimed in a new report on housing.
Renters relying on pensions to fund their ongoing housing costs, rather than living in unmortgaged homes, could prove a major burden for the government, leading the amount spent on pensioner housing benefit to more than double, reaching as much as £16bn by 2060.
Projections revealing a perfect storm of an ageing population and a higher proportion of older people in rented accommodation illustrated how policymakers must tackle the housing crisis or face footing a massive future bill, the report said.