Older tenant numbers surge as younger renters decline

Older tenant numbers surge as younger renters decline

0:01 AM, 10th December 2024, About A week ago

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Tenants on the brink of retirement are the fastest-growing group of private renters in England, research reveals.

According to an analysis by Paragon Bank, the number of households headed by individuals aged 55 to 64 rocketed by 66% between 2014 and 2024, reaching 492,000.

Those aged 65 and over followed closely, with a 33% increase to 433,000 households over the same period.

Conversely, younger demographics experienced a decline in private renting.

The number of households headed by individuals aged 16 to 24 dropped by 16% to 447,000, while those aged 25 to 34 fell by 9% to 1.45 million.

The demographics of tenants

Paragon’s managing director of mortgages, Louisa Sedgwick, said: “The shift in the demographics of tenants over the past decade is clear.

“There are more older households in the sector than ever before, with over 900,000 households led by a person aged 55 or over and the number of households aged between 55 and 64 hitting its highest-ever level.”

She added: “This has broad implications for the sector and policymakers.

“Older tenants are more likely to live in a rented home for a longer period, so they want security of tenure, the ability to make minor refurbishments and possibly to keep pets.

“Given the ageing demographic of the UK, we would expect this trend to continue, so landlords need to be mindful of the needs of more mature tenant groups and adapt their approach to suit their needs.”

4.7 million households are privately renting

The government’s English Housing Survey revealed that 4.7 million households are privately renting in England in the year to March 2024: that’s 19% of all households.

Proportionally, households with a lead tenant aged 55 or older now make up one in five private rented households, compared to 14% in 2014.

In contrast, those aged 24 or younger represent 41% of households, down from nearly half (49%) a decade ago.

While younger demographics are increasingly opting to buy with a mortgage, with a 62% increase in 16-24-year-olds and a 29% increase in 25-34-year-olds, the growing trend of older tenants in the PRS is undeniable.

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