Two leading think tanks have clashed on the best way to house Britain’s ageing population.

Policy Exchange and the Fabian Society agree that the concentration of home ownership amongst older people risks stoking inter-generational unfairness.

However, while the Fabians believe that the introduction of a property tax will lead to lower house prices, Policy Exchange says reform of the planning system to encourage developers to build more homes, including bungalows and self build homes attractive to older people looking to downsize, is the fairer way of reducing the generational divide.

The Fabian Society paper found that high property prices are in the interests of neither young nor old, because pensioners do not unlock their housing wealth during their own lifetime. It says the gap in ‘middle’ incomes between retired people and those of working age has narrowed dramatically over recent decades, calling into question the protection from the pain of deficit reduction enjoyed by many older people.

The paper argues that while many older people endure housing problems, ill health and isolation, their incomes are growing faster than those of people in working life. It therefore calls for a ‘presumption of equality’ across all age groups taking in eligibility for certain public services and a comprehensive review of taxation and social security spending.

Policy Exchange calls on policymakers to reform the planning system to encourage the construction of new good quality homes that will not antagonise local people. Current rules make it almost impossible for developers to build houses with extra floors which has led to a situation where only 2% of UK housing stock consists of bungalows. In 2009, only 300 bungalows were built.

The paper says that building more bungalows will allow older people to downsize, freeing up family sized homes for younger families.

If you are worried about what the future holds for you, we provide a range of legal services for the elderly across Scotland. Give us a call on 0141 248 3456 or click here for more details.