Older renters face financial hurdles ageing at home

Anglicare Australia surveyed 500 older people throughout Australia for their report Ageing in Place: Home and Housing for Australia’s Older Renters.

The report looked at how older people want to age and the challenges they face while living at home, with a particular focus on renters.

Although the vast majority said they want to age at home, there are several barriers standing in the way for older Australians in the rental market.

Older Australians want to age at home

Anglicare surveyed 500 people aged 50 and over, and found that 87 percent of people want to stay at home as they get older.

An unpredictable housing market, limited rental options and a soaring cost of living means ageing in place is unachievable for some, said Anglicare Australia Executive Director Kasy Chambers.

“The housing crisis is locking more and more Australians out of that dream. Almost 70 percent of renters in our survey said that cost is the biggest barrier to ageing at home,” says Ms Chambers.

“Others are worried about security. We interviewed people who were forced to move, accept changes to their lease, and were afraid of being evicted. This is at a time of life when stability is more important than ever.”

The average cost of home ownership has increased by 24 percent over the last 12 months. This limits the options for older people, many of whom sit in the low-and-middle income threshold and are likely unable to receive a home loan.

As a result of several contributing factors, some older Australians are being forced into residential aged care as they cannot source another rental when a lease ends or there is a rent increase.

More older renters struggle to make ends meet

A reported 72 percent of older renters are struggling to age at home due to the financial costs involved, while just 15 percent of older homeowners are facing financial hardship at home.

Those figures are impacted by the amount of income going into rent each week according to Anglicare’s report.

Of those surveyed, tenants said 30 percent of their income is dedicated to rent on average, while homeowners are only contributing five percent of their income for housing on average.

If you receive the Age Pension – even with rental assistance – it is likely that more than 30 percent of your weekly income is going into rent.

According to Anglicare’s Australia Rental Affordability Snapshot, a person on the Age Pension can afford less than one percent of available rentals. The median weekly rent is $508 across Australia and the maximum single Age Pension of $987.60 per fortnight would not cover it at all.

A couple on the Age Pension can receive up to $1,488.80, providing some additional flexibility when renting.

However, with rising rents across all properties – units, apartments or houses – your options are increasingly limited when there are recurring expenses for food, energy bills, health and insurance.

Competitive housing costs often translate to retirement living, where the average home is still roughly 90 percent of the median house price in this area and supply cannot meet demand.

Homes are not designed for accessibility

Older Australians are also limited by housing accessibility as only 46 percent of renters said their home is suitable, according to Anglicare.

Older homeowners are typically better placed for ageing at home with 70 percent living in a home that is suitable for their changing needs.

But many landlords do not allow for home modifications and short-term leases can lead to plenty of uncertainty. You may have even asked yourself whether it is worth investing in household modifications if you are going to move house.

The National Construction Code will introduce mandatory accessibility guidelines for new builds from 2023, as per Livable Housing Australia (LHA).

Livable Housing Designs provide a basic level of accessibility for older people, and people with disability, including no-step entries, more space in bathrooms, wider doorways and structural security for the addition of grab rails.

Unfortunately, New South Wales and Western Australia have chosen not to adopt the new guidelines. But the other States and Territories involved will be assisting in improving housing accessibility for older people in the future.

How can housing security be improved?

Long-term leases and greater rental security would provide older renters with more confidence that they can age at home.

Anglicare Australia is promoting head leasing, a type of long-term leasing with a guaranteed rental income and a commitment to return any property in good condition once the lease ends.

Head leasing typically involves Government management, or the support of a dedicated not-for-profit, to ensure appropriate candidates are receiving long-term leases.

Ms Chambers says this would be a perfect opportunity for older Australians to introduce the supports they need to age comfortably at home.

“We need reforms to aged care and home care so that renters can make changes to their homes, get the support they need, and stay independent for longer,” says Ms Chambers.

“We’re calling for a new model of leasing that offers longer-term security for older people and protects them from unfair rent increases. And we need a big boost to social housing.

“Social housing is the most powerful way to keep older people in secure homes, and stop them from going into aged care before they’re ready.

“Older people have told us what they need to age well. Our hope is that Governments will listen, and help more Australians to age at home.”

Additional support to keep older people at home will also place less stress on residential aged care facilities as a greater level of independence can be achieved with home care services instead.

You can learn more about home care services for older people in our article, ‘Staying at home for longer‘.