Lenvi’s report reveals how lenders can tackle the ageing population’s impact on UK homeownership
FinTech North strategic partners Lenvi, a UK-based fintech serving over 150 lenders, today publishes The Generation Gap, a new report examining how the UK’s ageing population is reshaping the housing market and what lenders can do to address these challenges.
By 2050, 1 in 4 people in the UK will be over 65, up from 1 in 5 today. Lenvi’s report highlights the urgent need for innovation in lending and housing policy to address the growing mismatch between available homes and the needs of an ageing society.
- By 2040, there will be 12.8 million surplus bedrooms in homes across the UK, with 63% in homes occupied by over-65s.
- Over 3 million over-65s want to downsize but feel unable to, limiting the supply of homes for young families and first-time buyers.
- Retirement living accounts for just 3% of the UK’s housing stock, leaving the UK behind international peers
- The UK faces a backlog of 4.3 million missing homes, driving average house prices to 8.3x annual earnings, compared to 3.5x in the early 1990s.
With healthier older adults occupying homes that exceed their needs and younger people facing mounting barriers to entry, market mobility has slowed, creating a housing stalemate. Simply ‘building more homes’ isn’t the answer; we need more of the right types of homes – including affordable housing and appropriate retirement living – to unlock supply and improve affordability across the market.
The new report from Lenvi explores recommendations for new financial products and government incentives to help older homeowners downsize, free up homes for the next generation, and boost overall housing supply, such as removing Stamp Duty for ‘last-time buyers’, and an evolving role for building societies to address local supply issues.
“By aligning new housing supply with actual household needs – supporting both older and younger generations in finding homes that match their circumstances – the UK can begin to unlock the full potential of its housing market and ensure that it works for everyone, at every stage of the homeownership lifecycle.The recommendations we make in this report toward solving the mobility and supply issues in the market certainly aren’t the only ones – but our hope is that the report provides a springboard to continue the conversation.” – Richard Carter, CEO – Lenvi
The report illustrates that while an ageing population presents new challenges for the UK’s economy, industries, and communities, it also offers significant opportunities for lenders. By embracing innovation and considering how both their products and their customers can help improve access to suitable homes, we can work together to build a housing market that works for all.
To access the report and recommendations, click the link here.
About Lenvi
Lenvi is a seasoned fintech offering market-driven, evergreen technology and services that empower lenders to deliver powerful, seamless, and responsible lending products to customers. Backed by 30+ years of industry expertise and regulated by the FCA, we drive growth, streamline operations, and ensure regulatory compliance.
Powered by leading innovators and technologists who are at the forefront of their discipline, Lenvi are truly helping shape the future of fintech in lending. Our agile and collaborative development approach delivers innovative lending technology solutions that stand the test of time; positioning us as a trusted partner essential to driving lenders’ growth and success.
