[Sethia Soliman]

Current couple's pension rate barely affords 1% of rental properties on the market​

It’s no secret that the prices of just about everything have skyrocketed. But among the millions of Australians taking the hit are poorly-funded pensioners.

A recent report made by one of Australia’s biggest charities found that roughly three-quarters of renters over 50 fear an unstable and unaffordable future as the escalating house costs trigger feelings of insecurity.

Anglicare Australia asked 500 renters aged 50 and above about their housing circumstances, hopes, and fears.

The report, Ageing in Place: Home and Housing for Australia’s Older Renters, revealed that housing costs are the biggest hurdle that older renters are struggling with. As a result, the issue has forced the majority of them to settle in the same place as they age.

Pensioners are struggling with house affordability. Source: The Guardian​

About 87 per cent of those surveyed expressed wished to remain at home as they age and over 78 per cent wanted to live in their own homes instead of moving into residential aged care.

However, 72 per cent of those living in private rentals pointed their fingers at housing costs as a barrier to ageing in place.

For those who owned their home, the reasons relayed as to why they’d rather settle were health-related, the inability to modify their home for accessibility and safety, and other costs of living issues.

Anglicare’s report also shared the story of a couple on the age pension struggling with the housing crisis. The pair admitted that they could only afford 1.4 per cent of the properties available for rent. The high rent prices also meant that retirement villages were out of the picture.

Wendy Morris, 75, who lives in ‘a tiny rented granny flat in the Perth Hills’ that she stumbled across on Gumtree, described the private rental system as broken.

Morris moved into her flat five and half years ago. In the preceding 14 years, she had moved 11 times–mostly because the landlord was either selling the property or wanted to raise the rent beyond what she could afford as a pensioner.

While Morris has recently received a windfall that can allow her to buy a property, life as a long-term, older renter has given her a deeper understanding of what her peers are facing.

‘There are simply no affordable rentals for anyone on a pension. If I were given notice tomorrow, (and had not received this windfall), I would have to share a house. That’s what it would come down to.’ Morris said.

The couple can only afford 1.4 of the properties available for rent. Source: Yahoo! Finance​

‘The scariest thing is insecurity and unaffordability, particularly for older renters… It uproots you from your community. It’s also very expensive to shift. It’s the financial stress and the mental health issues that come with it.’ she continued.

Unfortunately, the majority of rental homes do not meet basic accessibility standards.

Only 46 per cent of the participants said that their home would suit an older person with limited mobility. Renters are often prevented from making specific modifications that would fit their needs. Most are discouraged as one would need to ask for the landlord's permission and insecure leases made them question whether it was worth the trouble.

While the recently updated National Construction Code requires rental homes to have minimum accessibility standards, the law only applies to states and territories that have adopted it. New South Wales and Western Australia have refused to be a part of the code.

As a solution, The Anglicare report suggested strengthening renters’ rights, government support for long-term lease trials, building social housing specifically for older people, and piloting more equitable, innovative housing models.

The organisation also argued that Australians should have the right to access aged care services regardless of their place of residence and accommodation status.

In addition, it recommended indexing the Commonwealth Rent Assistance (CRA) payment to average rents by location.

‘A one-off increase will not be enough,’ the report said, insisting that a simple raise to the CRA ‘should not be mistaken for a systemic or long-term solution’.

‘Stability is more important than ever at this stage of life,’ Anglicare Australia’s Executive Director Kasy Chambers said.

‘Everyone should be able to live life to the fullest as they get older. For most people, that means ageing in their own home but the housing crisis is locking more and more Australians out of that dream.’

Do you agree with the qualms of the participants in the report? How do you feel about Australia’s housing crisis? Are you struggling with your rent or mortgage? Share your thoughts with us in the comments!

Learn more about how this issue is affecting other pensioners by watching the video below:

Source: ABS News (Australia)​