The number of middle-aged households in the private rented sector has risen sharply in the space of 10 years, according to research by Paragon Bank.
Analysis of government data revealed the number of privately renting households in England where the lead reference person is aged between 45 and 64 increased from 691,000 in 2011 to 1.18 million in 2021. This represents a rise of 70% – the biggest increase across the various age groups during that time.
The number of households aged 65-plus privately renting increased by 38% over the ten-year period, with those aged between 34 and 44 increasing by 21%. The 16- to 34-year-old group showed the smallest increase of just 3%.
In addition to the analysis of government figures, Paragon surveyed more than 2,000 tenants and found that nearly half (47%) of those aged between 45 and 64 expressed a desire to own their own home but only 19% were actively saving towards buying a property. Amongst the latter figure, 25% said they had finances in place and were searching, with 4% in the process of purchasing and the remaining 71% in the savings phase.
Just under a quarter of over-45s (23%) have lived in their current rental home for more than 10 years, with 22% living in the same home for between five and 10 years. This, said Paragon, suggests that older tenants view their rental home as long-term accommodation.
The survey of tenants also revealed limited mortgage potential for respondents, with just 14% of those in the 45-64 age bracket stating an annual income in excess of £50,000, a quarter earning less than £10,000 per year and a similar proportion earning between £30,000 and £50,000.
Richard Rowntree, Paragon Bank managing director of mortgages, commented: “Too much policy focus is on getting younger tenants on the housing ladder. Whilst this is important, the government should also consider the need to provide a home to older tenants who live in the PRS for the long-term.
“Just a fifth of 45- to 64-year-olds are actively saving towards buying a house, which suggests that they will remain in rented accommodation for the long-term. This has implications for the types of property that this group will live in as they age; for example, there may need to be an increase in one or two-bedroom properties and landlords will need to be open to property adaptions.”
“Ensuring there is a supply of property in the PRS to cater for their needs is vital,” he added.
Comments (1)
?????? so where were they living before! This is another one of those stats that really doesn’t make the point of why that age group is having to rent, considering at their time of life they should have pretty decent jobs and stable or is it that this age groups is increasing in unemployment or may be, just maybe from what we see has been an ever increasing number of divorce/separations that do not have the affordability to manage on their own?
2021 stats running at 33% of the populations seeking divorce.