Landlords should not just expect to rent out their property to young tenants, as the number of middle-aged renters has soared by 70 per cent over the last ten years.
According to findings from Paragon Bank, there are now 1.18 million people between 45 and 64 years old in the private rental sector (PBS) in England. The number of tenants older than 65 also increased by 30 per cent since 2012, while there are now 21 per cent more renters between 34 and 44 than ten years ago. In comparison, tenants aged 16 to 34 grew by just three per cent.
Managing director of mortgages at Paragon Richard Rowntree commented: “There is a perception that the PRS is home to the young when, in fact, over half of tenants are aged over 35 and the greatest income in the number of households is in the middle-aged 45 to 64-age bracket.”
The results also revealed more than one-fifth of this age group have been renting for more than 15 years, while 17 per cent have been in the PRS for between 11 and 15 years.
Just 19 per cent are saving for a deposit to buy their own home, even though half admit they want to.
The findings showed just 14 per cent of tenants who want to buy a house or flat earn over £50,000, and a quarter are taking home less than £10,000 a year.
As the average house price in the UK is £294,559, according to the recent Land Registry House Price Index, it is becoming harder for renters to save enough to get on the property ladder. A ten per cent deposit still requires savings of nearly £30,000.
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