Tenants over 45 more than double over last decade: Paragon

The proportion of middle-aged and older tenants living in privately rented homes has more than doubled compared to those under 35 over the past decade, according to Paragon Bank.

There was a 110% jump between 2011 and 2021, in the number of households privately renting in England where the household lead was aged between 55 and 64 to 485,000, while those between 45 and 54 lifted 50% to 691,000, says the lender.

The number of households aged 65 and over hit 382,000 in 2021, up 38% from a decade before.

By contrast, the number of 16 to 24-year-old households in this sector slipped by 3.7% over the same period to 560,000, while those aged 25 and 34 lifted by 6% to 1.37 million.

Overall, households aged 35 or over living in rented homes totalled 2.5 million, compared to 1.9 million aged 34 or below, which the firm says “challenges the stereotype that the private rented sector is primarily a tenure for younger tenants”.

Paragon Bank managing director of mortgages Richard Rowntree says: “The private rented sector has evolved over the past decade and has seen strong growth in the number of middle-aged and later life tenants. The perception of rented property as being the preserve of the young is outdated.”

“People are also living in their rented homes for longer. There has been a 132% increase in the number of households who have lived in their home for between five and 10 years over the past decade, with a 115% increase in those living in a rented home for between 10 and 20 years.”

Those living in a property for between one and two years increased by only 5%, says the lender, which drew its data from the latest English Housing Survey tables published last week.

Rowntree adds: “There could be a number of reasons for the growth in older tenants. We are seeing a greater number of people living in rented accommodation for life, plus people are releasing the equity in their homes and opting to rent instead. The growth of single-person households is also driving some of the growth.

“Landlords need to consider what this cohort of tenants needs. For example, those between 35 and 55 are more likely to have family, so need larger detached or semi-detached homes, while those in later life require simpler homes to maintain that are close to amenities. In addition, tenants want flexibility about making adjustments to their homes, or keeping a pet.”