A growing number of people approaching retirement who rent privately could struggle to cover their housing costs once they stop working. Analysis by Sky News indicates an 82% increase in privately renting households aged 55 to 64 since 2008.
Renting for 20 years in retirement could cost an average household £461,460 more than owning a home outright. Even moving to a one-bedroom property would still mean paying an additional £374,690, according to the analysis.
Jenny Lamb, a policy officer at Shelter, highlighted the concern that individuals unable to afford private rents might face homelessness. She described the current situation as a "housing emergency," attributing it to government failures in building social homes and the increasing unaffordability of home ownership.
The Centre for Ageing Better reported that real average house prices rose by 137% between 1988 and 2025, while real median weekly wages increased by 44% over the same period. The Pensions Policy Institute found that current minimum pension contributions are insufficient to cover the extra cost of renting after retirement. Furthermore, the Centre for Ageing Better's analysis links renting with a higher poverty rate among those aged 50 and over.