Pensioners facing housing shortages could become a significant problem if the government fails to address the property crisis, a think-tank has warned.
The International Longevity Centre – UK (ILC-UK) warned the government to make sure it prioritises ways to fix the housing crisis across Britain, as thousands of pensioners could face a retirement housing gap in the next decade.
Baroness Sally Greengross, chief executive of the think-tank, has urged government to ensure thousands of new retirement properties are built as a matter of urgency.
She has also called on the government to introduce a duty on local authorities to assess the needs of their older populations when making housing plans, and ensure these needs are met before plans are put in place.
Earlier this month, housing minister Gavin Barwell suggested making it easier for older people to downsize could help solve the housing crisis.
Baroness Sally Greengross, chief executive, ILC-UK said: "The housing minister is right to recognise that meeting the needs of last time buyers and encouraging downsizing is crucial to addressing the housing crisis.
People should be free to choose how and where they live. However, there are many people who want to downsize but are put off because of the cost. Paul Green"Downsizing can also ensure that older people live in properties that allow them to stay in their own homes for longer, and can release equity that can be used to fund social care in later life.
"However, unless government acts to encourage local authorities and developers to meet the needs of last-time buyers, there could be a retirement housing gap of 160,000 retirement homes by 2030. If current trends continue, the gap could grow to 376,000 homes by 2050."
Research conducted by the ILC-UK has found:
- Nearly 9 in 10 of the 65-79 age group live in under-occupied housing – over 50% live in homes with two or more excess bedrooms.
- There are around 515,000 specialist retirement and extra care homes in England. There is only enough specialist housing to accommodate 5 per cent of the over-65 population.
- According to ILC-UK calculations, there could be a retirement housing gap of 160,000 retirement housing by 2030 if current trends continue.
- By 2050, the gap could grow to 376,000.
Baroness Greengross said as well as freeing up a range of properties throughout the housing market, downsizing in later life could help to ensure more people can stay in their homes for longer, reducing pressure on the residential care sector.
The warnings come ahead of the anticipated government White Paper on housing, which is expected to be published today (7 February) after Sajid Javid, secretary of state for communities, delivers an oral statement to the House of Commons at 12.30pm.
Ms Greengross added: "Local authorities must have a duty to assess the needs of their older population when making housing plans, and ensure that these needs are met before plans are put in place.
"Government should also consider what changes can be made to Stamp Duty to remove the perceived financial barrier of downsizing."
The warnings come after figures from the UK's national statistics agency the Office for National Statistics, which has charted a demographic trend over the coming years.
Estimates from the agency have found the UK population will increase by 9.7m over the next 25 years.
The population is set to rise from an estimated 64.6m in mid-2014 to 74.3m in mid-2039.
Moreover, a significant proportion of the population will be over 60. The ONS has also projected that, by mid-2039, more than one in 12 of the population is projected to be aged 80 or over.
Over 50s specialist Saga has also been lobbying successive governments for a Stamp Duty exemption for downsizing and buying age-appropriate homes.
Saga's director of communications, Paul Green, commented: "If the Prime Minister can bring in measures to enable people to 'rightsize' in retirement this would be a true inter-generational solution to the housing crisis and would deliver on Mrs May's promise of helping young and old alike.
"People should be free to choose how and where they live. However, there are many people who want to downsize but are put off because of the cost."
