Rented homes to cre­ate pen­sioner fund­ing gap

The Daily Telegraph - Business - - Business - By Anna Isaac

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.

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