Number of pensioners in house shares triples in a decade: "It’s no surprise that the majority are looking for lower cost structures for living"

THE number of pensioners in house shares has tripled over the past decade as property experts said "it’s no surprise that the majority are looking for lower cost structures for living".

More students and graduates are remaining at home with their parents, while older generations, unable to save for a deposit for a home of their own, are staying in house shares for longer, Spareroom data shows.

In 2015, under-25s accounted for 32 per cent of all flat sharers, but that has dropped to less than 26 per cent.

The number of over-45s in flat shares has been increasing. Those aged 45 and over now make up 16 per cent of the market, up from 10 per cent in 2015. 

But the biggest increase has been among the oldest renters. Ten years ago there were hardly any over-65s in flat shares, less than 1 per cent, but pensioners now account for 2.4 per cent of the flat share market. 

The amount of 25 to 34-year-olds are also in decline with 42 per cent of the market, down from 45 per cent a decade ago. 

Matt Hutchinson, a director at Spareroom, said: “Unaffordably high rents are shifting household dynamics as well as changing the geography of flat-sharing too. The youngest are being priced out of the rental market altogether, as older renters are priced out of home ownership or renting solo. 

“The long-term picture is concerning as the UK is not geared towards renting for life. Those who haven’t built equity in property could be much worse off in their retirement years unless something changes dramatically.”

Samuel Mather-Holgate, Managing Director & IFA at Swindon-based Mather and Murray Financial, said it's no suprise with such high property costs.

He added: "Property costs have soared, and rents are eye watering following interest rate hikes. By contrast earnings struggle to keep up with the cost of living. It’s no surprise that the majority are looking for lower cost structures for living, and house shares are perfect for this. 

“Pensioners have been lucky since the introduction of the financial irresponsible triple lock as the basic state pension increases at a pace not seen since Usain Bolt. That said, housing costs are in that race too.”

Omer Mehmet, Managing Director at Trinity Finance, said: “These figures show how deeply unaffordable housing is reshaping British life. When rents and house prices rise faster than earnings for years, people are forced into compromises that would once have been unthinkable — from graduates staying at home to pensioners sharing flats. 

"The UK still isn’t set up for renting for life, and without serious reform on supply and affordability, more people will reach retirement without housing security.”

Babek Ismayil, CEO at homebuying platform OneDome, said: "House sharing among older renters is not a lifestyle trend but a financial coping mechanism. Property costs have surged while wages and savings have struggled to keep pace, leaving many people with few affordable options. 

"This shift exposes a housing system under severe strain, where even pensioners are being pulled into the rental market’s pressures.”