The number of middle-aged households privately renting has rocketed by 70% in just a decade.
In its analysis of government data, a report by Paragon Bank shows the number of households in England where the main tenant is aged between 45 and 64 has risen from 691,000 in 2011 to 1.18 million in 2021. It also found many in this age group looked set to remain in rented homes for the long term.
The number of renters who are over 65 has soared by 38%, while the number of those aged from 34 to 44 has increased by 21%. In contrast the increase for those aged 16 to 34 has risen only by 3%.
A survey by Paragon of more than 2,000 tenants reveals while the desire to own a home is high in the 45 to 64 age group, buying power is limited. Nearly half of this age group (47%) wants to buy their own home, yet only 19% are actively saving towards buying a property.
Another issue facing this group is income. Just 14% of those in the 45 to 64 age bracket have an annual income in excess of £50,000. A quarter earn less than £10,000 per year and a similar number earn between £30,000 and £50,000, inhibiting the ability of tenants in this bracket to save for a deposit and limiting their ability to get a mortgage.
Tenants aged 45 or over have been renting for longer, lived in more properties and tend to stay longer in the same home than those who are younger. They are also more likely to live alone when compared to younger people.
Over a fifth of those aged between 45 and 64 (22%) have lived in privately rented accommodation for more than 15 years, with a further 17% in the sector for between 11 and 15 years. Conversely, those under 45 typically have spent less time in rented homes, with nearly seven in 10 living in the sector for less than five years.
Sheldon Bosley Knight’s lettings manager Josh Jones said: “There has always been a perception the private rented sector is populated by those aged under 30. However, these figures show this is no longer the case.
“Many of those who are older and who have tried to save over the years may now be thwarted thanks to the increases in mortgage rates and inflation. They may now simply shelve plans to buy their own home and stay renting for the long term.
“This has implications for the types of homes they will want to live in. They may want a smaller home, or one which is all on one level, or perhaps with a smaller amount of outside space, and so it’s vital there is a variety of property types available to cater for every age group.
“Here at Sheldon Bosley Knight our teams can help tenants when it comes to choosing the right home so please pop into one of our offices or call us and we would be delighted to help.”