One of the three pillars of retirement funds in the UK is quietly crumbling

12th August, 2026 | News

UK Renters Near Retirement Face Growing Homelessness Risk

A growing number of older private renters in the UK are approaching retirement without the financial security of homeownership, raising concerns about a potential increase in housing insecurity and homelessness.

Analysis by the Sky News Money team shows that the number of privately renting households aged 55 to 64 has increased by 81% since 2008.

Those who continue renting throughout a 20-year retirement could spend an average of £461,460 more on housing costs than homeowners who have fully paid off their mortgages. Even downsizing to a one-bedroom property could leave retirees paying about £374,690 more.

Experts at the Centre for Ageing Better have warned that the situation could lead to increased financial hardship, debt and pressure on an already stretched social housing system.

The difficulties are already being experienced by some retirees. Wendy Butler, 70, from Cockermouth, said her landlord wants to increase her monthly rent from £625 to £950, a 52% rise, while she relies on a fixed income.

The figures highlight growing concerns over Britain’s traditional retirement model, which has relied on a combination of the state pension, workplace pensions and homeownership.

However, rising property prices and relatively slower wage growth have made homeownership increasingly difficult for many people.

According to the Centre for Ageing Better, real average house prices increased by 137% between 1988 and 2025, while real median weekly wages rose by only 44%.

The figures have renewed calls for greater attention to the housing needs of older private renters before more households reach retirement without secure or affordable accommodation.