With the release of the latest ONS private rental affordability data published earlier today, L&G’s Managing Director, Retail Retirement, Lorna Shah provides perspective on what the findings reveal about the pressures facing renters across the UK and the wider implications for long-term financial planning.
Lorna Shah, Managing Director, Retail Retirement, L&G commented:
“Today’s data on private rental affordability from the Office for National Statistics (ONS) finds that the percentage of income private renters in England can expect to spend on their rent has increased from 34.2% in 2023, to 36.3% last year. The data considers the income of people who are employed, who will no doubt feel the impact of rising rents on their household budgets, however we also know that there are a larger number of people renting into retirement than ever before, and it’s a number that is rising.
The Office for Budget Responsibility (OBR) projects that by 2041, 17% of pensioners may live in private rentals – up from 6%, an additional 1.2 million people compared to today. Given that many retirees have fixed incomes, rises in housing costs such as this will disproportionally impact them. It’s really important for those who are planning to rent once they stop working to factor in the variable nature of the rental market, to ensure they have enough set aside to cover any increase in costs.”
