High home ownership levels for elderly under threat: report

1.00pm

A new report is warning that high levels of home ownership among the elderly may not last given a drop-off in home ownership rates among all groups.

The report by the Centre for Housing Research released today found that most older people lived in private homes as opposed to institutions or residential care.

The number of older people who owned mortgage-free homes was high, although this varied by ethnicity.

"The fall in ownership rates over the last decade has affected all age groups and is especially marked for Maori and Pacific people," it said.

"These trends warn that current levels of home ownership in old age may not be maintained in the future."

Low income people were less likely to achieve home ownership, and renting was associated not only with lower levels of health and wellbeing but also with social disadvantage.

Rental housing was often of a lesser quality and located in less beneficial locations. Renters also tended to feel less in control of their housing environment and therefore of their wider lives, reducing independence and security.

The report said the minority of older people rented their accommodation from private landlords, Housing New Zealand Corporation (HNZC) or local authorities.

"Older men are more likely to rent privately than older women and the reverse is true for renting from HNZC.

"Older Maori and Pacific people are more likely to be renting than older Pakeha and a high proportion of older Pacific people rent from HNZC."

The report said public sector pensioner housing stock was in need of upgrading and might also be unsuitable for current requirements, being dominated by small units and bedsitters.

The private rental market was fragmented and tended to be associated with lower quality housing, although this was where the largest group of older tenants was to be found, it said.

The report said the ageing trend would continue with that growth particularly rapid in the 85 and over age group.

Concepts that should be examined to see if these were appropriate for New Zealand included equity release schemes to fund home maintenance, renovations, adaptations and improvements.

New forms of tenure such as shared ownership should be looked at.

More research was needed to see how new technology could be applied in housing for older people to improve comfort and security.

Special cultural requirements and the preference to live with other older Maori and Pacific people suggested that the "social village" model would be appropriate for these groups of people, the report said.

Ageing "in place" -- in the same home -- was clearly a favoured approach in New Zealand government policy, it said.

"But staying in a long-term family home may not be the best option in all circumstances.

"Specialised housing, in the form of sheltered or extra-care housing, retirement villages or social villages will be part of the mix.

"Nevertheless it is likely that the vast majority of older people in the future will be 'ageing in place' rather than in institutional care."

It might be more economic to renovate existing housing than to build specialised housing for older people to cope with the increased demand fuelled by an ageing population, it said.

Housing Minister Steve Maharey said about 12,000 older -- 65 plus -- New Zealanders lived in state houses while many others lived in about 14,000 local government tenancies.

HNZC had programmes to make it easier for older tenants to stay in the same home or community -- for instance, by modernising homes to make them warmer and easier to maintain, and reconfiguring housing stock to offer smaller, more manageable homes.

Mr Maharey said there were also programmes with local government and voluntary agencies to increase the amount of housing specifically designed to meet the needs of older people on low incomes.

Of 1054 new homes HNZC would acquire this year, half would be one or two-bedroom properties which would be particularly suitable for older people on the waiting list.

A housing strategy -- to be released later this year -- would discuss the future housing of older people, Mr Maharey said.

- NZPA