Radical appeal to elderly homeowners to help meet nation’s urgent housing need

The scheme – announced by Housing Minister Grant Shapps – would see local authorities offer to help pensioners living in family-size homes to find more suitable places to live.

The councils would then take over responsibility for maintaining the property and renting it out at affordable rates, returning any profit to the elderly person or their estate.

Officials have stressed the scheme was purely voluntary and no one would be forced to move.

Mr Shapps said: “For too long the housing needs of the elderly have been neglected.

“Older people who should be enjoying their homes have watched helplessly as their properties have become prisons, and many have been forced to sell their homes and move into residential care.

With nearly a fifth of our population expected to be over 65 by 2020, radical and urgent change is needed to ensure the nation’s housing needs are met.”

He said for some older people, the move to more suitable accommodation could make a “life-changing difference” adding: “They can live independently for longer and enjoy more disposable income without selling their home, and other families can benefit from living in an affordable home.”

The Intergenerational Foundation published a report last year suggesting more than a third of homes in England are “under-occupied” and calling for tax breaks to encourage older people to downsize.

Angus Hanton, co-founder of the organisation, said: “When we launched our November 2011 report suggesting that older people that wish to should be given help to downsize, the Housing Minister accused us of ‘bullying’ old people out of their homes.

“Grant Shapps’ subsequent U-turn on downsizing is therefore to be welcomed.”

Age UK charity director Michelle Mitchell said elderly people should not feel obliged to move out of their homes.

She said: “No-one of any age should feel that they have to move out of their own home unless it is what they would like to do."