A third of millennials could be forced to rent in retirement, according to a report from the Resolution Foundation thinktank. However, it also warns that policy makers can not afford to neglect a crucial part of Britain's "here and now" housing crisis - poor quality and insecurity in the private rented sector (PRS).
Policy has failed to catch up with the fact that raising children in privately rented homes has become the norm, the Foundation said.
It sets out clear recommendations to tackle the UK's housing crisis and argues that more should be done to build affordable homes to get young people onto the housing laddder.
Private renting has grown rapidly in recent decades, the Home Improvements report said. The Foundation said the hike in retiree renters - combined with an ageing population - could more than double the housing benefit bill for pensioners to £16 billion by 2060.
The think-tank said there had been a boom in private renting, with four in 10 millennials - roughly defined as those born between 1980 and 2000 - living in rented accommodation at the age of 30 across the UK.
A Scottish Government spokesman added: "This report notes Scotland has taken the lead in this area within the United Kingdom, with the introduction of the new private residential tenancy, which is the most significant change in private renting for nearly 30 years".
Lindsay Judge, senior policy analyst at the Resolution Foundation, said: "Britain's housing problems have developed into a full-blown crisis over recent decades and young people are bearing the brunt - paying a record share of their income on housing in return for living in smaller, rented accommodation".
The introduction of indeterminate tenancies as the sole form of contract in England and Wales, following Scotland's lead and the practice in Germany, the Netherlands, Sweden and Switzerland. It points out that landlord could remove a tenant that fails to pay the rent or treat the property well, or if they wish to sell or reoccupy the home, but cannot simply end the tenancy at short notice without good cause.
Light-touch rent stabilisation that limits in-tenancy rent rises to CPI inflation for three-year periods.
A third of millennials could still be renting by the time they retire, a report has warned. That means raising standards and reducing the risks associating with renting through tenancy reform and light touch rent stabilisation, ' she explained.
"For any housing strategy to be relevant and effective for people of all ages, it must include this combination of support for renters, first time buyers and ultimately a level of housebuilding that matches what the country needs".
A Ministry of Housing, Communities and Local Government spokeswoman said: "Our Help to Buy scheme and the recent cut in stamp duty are helping more young first-time buyers get on the property ladder".
'But we're also helping to ensure that everyone has a safe and decent home by giving councils stronger powers to crack down on bad landlords and consulting on stronger protections for tenants themselves'.