Private rentals in later life on the rise

Private rentals in later life on the rise
 Credit: Luke MacGregor/Bloomberg

The private rented sector will play an increasing role in housing later life tenants, according to Paragon Bank.

The bank’s analysis of government data showed a 118 per cent rise in the number of English households in the 55-64 age category who were renting privately between 2010 and 2019.

The rate of growth is almost double that of the 35-44 age category, which was 65.7 per cent.

The number of households aged over 65 and renting also grew by 93 per cent in the same period.

Richard Rowntree, managing director of mortgages at Paragon Bank, said: “There are a number of factors that may have contributed to the increase in over 55s in the PRS over the past 10 years, such as rising divorce amongst older people, poorer pension returns and men living longer.

“With the number of over 55s forecast to rise from 30 per cent of the population to 36 per cent by 2043 and new household formation predicted to be driven by older, single person households, the PRS will have an increasingly important role to play in providing a home for older tenants.”

Meanwhile, the bank’s own survey of 500 landlords in July found that some appeared to be responding to changing demand.

Two in 10 landlords expected to let to more older singles in the future (21 per cent), and to retirees (20 per cent).

Mr Rowntree added: “Landlords are already reacting to the changing demographics of the PRS and, with older tenants becoming more commonplace, will have to increasingly do so.

“Landlords will need to consider longer tenancy agreements, the location of their property and any adjustments the property may need for later life tenants.”

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