Rising rents are putting a strain on retirement incomes with those living in London and South East worst affected

Rising rental costs are putting pressure on people’s expected retirement income, a report found.

The Scottish Widows report looked at what percentage of income people across the country can spend on their rent in retirement.

The places where retirees typically won’t see their income, at least their rent, include London and the South East.

It follows separate research from Hamptons that suggested the number of households over age 65 renting their homes will double over the next decade to more than a million.

It claimed the number would more than double from 402,963 last year to 1,003,382 in 2033.

The places where those who rent in retirement can expect to spend at least 80 percent of their income on their monthly rent payments are the East of England, the South West and Scotland – with 98 percent, 89 percent and 82 percent respectively.

In these areas, a lack of supply and high demand has made renting out of reach for many people, including retirees.

In contrast, the region where retirees can expect to spend the smallest percentage of their income on rent is the Northeast at 59 percent.

There are four regions where retirees are expected to spend between 62 and 69 percent of their income on rent.

These are Wales – where they will spend 62 per cent of their income on rent -, the North West at 65 per cent, the East Midlands at 66 per cent and the West Midlands at 69 per cent.

Due to a lack of supply and high demand, rents have become unattainable for many people, including pensioners

Pete Glancy, from Scottish Widows, said: ‘Rising rental costs are a major challenge, especially for those on lower pension incomes.

“It could become extremely difficult for them to reach even a minimum retirement age.

As a result, many may become dependent on housing benefit or be forced to downsize to smaller and more affordable homes to ease the burden of rent costs.

‘This has major consequences for ‘Generation Rent’, who will have to save considerably more for their retirement.’

It comes after the Office of National Statistics revealed that the number of households renting has more than doubled over the past two decades.

About five million households in England and Wales rent privately, up from 3.9 million in 2011.

Mr Glancy added: ‘On the other hand, homeowners have the additional option of releasing equity from their home later in retirement.’

The Scottish Widows’ pension report went on to say that while many people are preparing well for retirement, a substantial minority are left to fend for themselves.

Enjoying basic comforts in retirement also includes being able to pay rent, something that is under pressure as rents rise across the country.

Pensioners who rent and live in London and the South East are hardest hit by rising costs

The average price to rent a house outside London has reached an all-time high of £1,231 per month.

The picture is even more alarming for those looking to rent in London, where typical values ​​have also hit a record £2,567 a month.

Rightmove’s data means average rents have increased by £300 a month outside London and £559 a month in London compared to pre-pandemic levels in 2019.

Rightmove explained that there is fierce competition among tenants for housing, with it taking just 17 days to find a tenant a place to live.

The average rent being asked for a typical house outside London is now 33 per cent higher than at present in 2019, up by more than £300 from £923 per month.

It’s a similar story in the capital, where average asking rent in London hit a new quarterly record of £2,567, and while the pace of rental growth has slowed slightly, it remains in the double digits for a seventh consecutive quarter.

Rents in London are now 28 per cent higher – the equivalent of £559 per month – than they are at this point in 2019.