You just can’t beat the ageing process and now retirees are predicted to dominate household growth over the next two decades

Data from the Office for National Statistics found households headed by someone aged 65 or over are projected to increase by 155,000 per year, accounting for 74% of total household growth by 2039.

In contrast, households headed by someone aged 25 to 34 are projected to decrease by 9,000 per year by 2039.

The data chimes well with figures released this week showing 54% of over 55s have given a one-off lump sum to a family member over the past five years, while 18% have had to postpone refurbishment work on their home or cut food bills in order to help children and / or grandchildren.

So the older folks have all the houses and are also funding the younger generation.

The figures come from an organisation called Homewise, which perhaps unsurprisingly suggests one solution for the older generation is to release debt by moving to a more suitable property using its own Home for Life Plan.

The business says it wants to revolutionise the retirement market and stop retirees being left in unsuitable housing. That’s a laudable aim, so EYE took a look at how the Home for Life Plan works.

Homewise has been around for 40 years but in 2008 it launched the Home for Life Plan, giving those aged over 60 the chance to purchase their next home with a significant discount from the full market price.

It has partnered with several estate agents who help market the product and receive a referral fee in return. The properties on offer are listed as suitable for retirement by Homewise, however, the agent may not provide the same description.

For example, Homewise is currently listing a 5-bed detached house in Hampshire for £561,500 that it describes as suitable for retirement. But if you want to buy it  from the agent, Cubitt & West, it is £850,000, but there is no mention of it being a retirement property.

The price difference is accounted for by the way the Home for Life Plan works. A buyer, who must be over age 60, gets a discount on the purchase of up to 59%, depending on their age and situation, as they are getting a lifetime lease to help fund the transaction.

However, the property itself may not have any of the retirement features you may expect, such as an on-site warden.

EYE asked Homewise if this was misleading, but a spokesman said in a statement: “The Home for Life Plan is age restricted and applies for the home only. The buyer however has to confirm that the property meets their requirements now and in the future.”

Rightmove says there is no set definition of a retirement property, while Homewise says by partnering with agents it gives sellers access to a wider market and a buyer over age 60 could purchase a property they may not otherwise be able to afford.

Unlike with an equity release plan, that many retirees may use to remain in their own home and release debt, this product isn’t regulated, despite it being a pretty important financial decision.

This also means a property can’t be left in a will.

There are some protections for buyers such as a Declaration of Trust that allows up to 50% of the future value of the property to be retained and passed on as an inheritance.

A spokesman explains: “Our product falls outside FCA regulation as it is a property transaction. It’s not equity release, a loan or a mortgage. There are three separate documents designed to protect our customers: the Home for Life Lease is registered at Land Registry and this protects the customer’s right to live in the property for their lifetime.

“The Declaration of Trust protects the customer’s retained percentage of the property’s future value; and their solicitor is also required to sign a Solicitor’s Certificate to confirm they have independently advised the customer and the customer fully understands the plan before they can proceed.

“The Declaration of Trust protects the customer’s retained percentage of the property’s future value.”

Once the owner moves into care or passes away the property will be sold and the percentage retained passed to the customer or their estate.

So will this revolutionise the retirement market? Any ideas are welcome, especially as the age of a first-time buyer increases and housing needs to adapt to older needs.

Typically someone looking for a retirement property may be ill or vulnerable, so professional advice is vital in this and all types of product, when it comes to making such an important decision.

Finally, and perhaps most importantly, if the older generation are moving just to help their children or grandchildren, it is perhaps the youngsters that need to sort their finances, not their elderly relatives.