Independent Age asked people to share their thoughts on what a good home means to them, this is what we heard:
- A safe place
- A refuge
- Comfortable
- Affordable, warm and pleasant
- Cosy
- Fit for purpose
- It is my safe haven!
- Safety, warmth and security
- Everything
- Secure
- Being able to invite family
- Well maintained
- Affordable upkeep
- Comfort, security, peace of mind
- Warm
These hopes sound universal, yet people’s experiences are not. Being a homeowner or a renter is a significant factor in the likelihood of living in poverty.
Older private renters are at severe risk of financial insecurity and pay the highest proportion of their income on housing costs compared with people in other housing tenures. Yet, with the current housing system failing to deliver the affordable, secure homes that people need, more older people are finding themselves living with financial insecurity.
This research conducted by the UK Collaborative Centre for Housing Evidence (CaCHE) predicts a bleak future, with increasing poverty among older renters as the UK's ageing population grows.
Increases in renters
In the future, renting in later life is likely to become the reality for more people. CaCHE’s research projects that the number of renters in later life will rise substantially, with almost one quarter of all people aged 65 and over predicted to be living in rented accommodation by 2040.
This will mean the proportion living in the private rented sector more than trebles from 4% in 2022 to 13% in 2040.
Although the majority of people in later life will still own their own homes, there will be a decline in the proportion of people aged 65+ living in homes they own or in social homes.
Poverty levels
Existing data shows that older renters are disproportionately likely to be in poverty compared to those who own their own home.
Based on the assumption that poverty levels among the 65+ population within each tenure will change between 2022 and 2040 in line with year-on-year poverty level trends since 2010, the research projects that by 2040 there will be an increase in poverty among all older people from 17% in 2022 to 23%. This would mean that the number of people living in poverty in later life across the UK could increase from 2.1 million to 3.9 million people.
By 2040, it is estimated that 74% of older people who are social tenants and 50% of older people who are private tenants will be living in poverty, and almost two-thirds of all older people living in poverty (64%) will be living in rented accommodation, despite more than three quarters (77%) of all older people being owner-occupiers. For older people in the UK, being a renter hugely increases your risk of experiencing poverty in later life.
Groups more at risk
If poverty levels among people aged 65+ continue to change in line with year-on-year trends since 2010, in 2040:
- 14% of all older women will live in the private rented sector and more than half of them (54%) will be in poverty
- The increase in poverty is likely to be greater among women compared to men, increasing from 20% of women aged 65+ being in poverty in 2022, to 26% in 2040
- 61% of older private renters with a disability and 76% of older social renters with a disability could be in poverty
- Poverty levels among older people with disabilities is forecast to increase dramatically from 18% in 2022 to 29% in 2040. This compares with an increase of poverty levels in the non-disabled older population from 17% to 19%.
Key statistics
Poverty among older people could increase from 17% in 2022 to 23% in 2040.
Poverty is projected to increase more for older women than older men, going from 20% to a predicted 26%.
Poverty levels among older people with a disability will increase significantly from 18% in 2022 to 29% in 2040.
14% of older women will live in the private rented sector and more than half of these (54%) will be in poverty.
Almost one quarter (24%) of all older people (65+) could be living in rented accommodation by 2040.
The proportion of people aged 65+ living in the private rented sector is forecast to treble from 4% to 13%.
About the UK Collaborative Centre for Housing Evidence
Established in 2017, the UK Collaborative Centre for Housing Evidence (CaCHE) is a consortium of eight partners in higher education and non-academic institutions. It is the leading evidence centre on housing research in the UK and brings together experts from different disciplines to foster collaboration, knowledge exchange, and engagement with policymakers, practitioners, researchers, and the public.
What is Independent Age calling for?
We all need a good quality, affordable and secure home to maintain good physical and mental health, increase independence and financial security, and enable connection with friends and family. To make this a reality for people of all ages, significant policy change and intervention is needed.
Independent Age recommends:
Want to know more?
Our full report is available to read and download. Find out more about the findings of CaCHE’s research looking at what the future holds for older people in poverty and those renting in later life in 2040.
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