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Landlords are increasingly likely to be renting to older tenants in the coming decade with the proportion of renters in private rented accommodation over 65 years old doubling to 11.5%, it has been reported.
Letting agency Hamptons says its research reveals that, after a decade of steady growth, the number of older renters is poised to increase rapidly with the amount of rent paid by them more than doubling from £5.1 billion a year to £12.75 billion.
This surge can be explained by lower home ownership rates among the tail end of baby boomers (born in the early-to-mid-1960s) and ‘Gen X’, who are those born between 1965 and 1980.
The rising share of older households which rent has been coupled with a much more rapid increase in the number of older households more generally.
Taken together, it means the number of households renting in England aged 65 and above will double by 2030.
Today there are around 400,000 older households (over 65s) renting and this figure is set to pass 1,000,000 by 2033.
Boomers
Commenting Aneisha Beveridge (pictured), Head of Research at Hamptons, says: “The rising number of older renters reflects the gradual unwinding of the large increase in homeownership rates after the Second World War.
“As younger generations who missed out on the homeownership boom age, growing numbers are likely to be renting when they retire.
“The recent rise in mortgage rates will make it harder to buy later in life. It’s long been the case that if you’re not on the ladder by 40 years old, it becomes more difficult.
“But higher mortgage rates will make this challenge even tougher given the difficulties in stretching a mortgage term to reduce monthly payments, particularly in the early years.”
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