The latest figures from Paragon Bank have unveiled a surprising shift in the private rental market.
It turns out that older tenants are the new rising stars of the rental scene, while their younger counterparts are making a beeline for homeownership.
Between 2014 and 2024, the number of households headed by someone aged 55 to 64 skyrocketed by a whopping 66%, reaching 492,000. Not far behind, the 65+ age group saw a 33% increase, now totalling 433,000 households. Meanwhile, the youthful 16 to 24 crowd saw a 16% dip in private renting, and those aged 25 to 34 experienced a 9% decline.
The English Housing Survey revealed that 4.7 million households rented privately in England by March 2024, making up 19% of all households. Interestingly, one in five privately rented households now has a lead tenant aged 55 or over, up from 14% in 2014. In contrast, those aged 24 or below dropped from 49% to 41%.
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While younger renters are dwindling, they're not disappearing entirely. Many are jumping onto the property ladder, with mortgage-holding households aged 16 to 24 soaring by 62% and those aged 25 to 34 increasing by 29%.
Louisa Sedgwick, Managing Director of Mortgages at Paragon Bank, highlights the implications of this demographic shift. Older renters often seek long-term security, the freedom to make minor home improvements, and the joy of pet companionship. With the UK's ageing population, landlords need to adapt to these evolving tenant needs.
So, landlords, it's time to embrace this silver wave and cater to the mature market. After all, a happy tenant is a long-term tenant!
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