Older tenants lead flatsharing surge as the PRS evolves

The landscape of flatsharing is undergoing a dramatic shift, with older generations leading the charge, research reveals.

Data from SpareRoom reveal that the number of over-65s hunting for rooms in shared houses or seeking housemates has surged by an astonishing 970% over the past 10 years.

Meanwhile, the over-55s have seen their numbers swell by 189% in the same period, marking them as the fastest-growing groups in the housemate market.

The flatshare platform also shows that younger adults appear to be stepping back from the flatsharing – and it says ‘common sense’ changes are needed to the PRS.

Numbers will climb

The firm’s Matt Hutchinson said: “The rising cost of living has left people with less money each month to divert into retirement savings which is why we’re expecting to see the numbers of mature flatsharers continue to climb.

“For younger people, the transition from renting to buying is no longer a milestone that feels remotely achievable, and inflationary pressures on the rental market make it harder to access, as well as harder to leave.

“More are living with their parents for longer.”

He added: “We have to make common-sense changes to the private rented sector now, to make renting at any age – and for life – an affordable and viable option in the UK.

“Making better use of existing housing stock and offering more generous tax incentives under the Rent a Room scheme is crucial to boosting rental supply and increasing affordability across the rental sector.

“So too is incentivising landlords to stay in the rental market, provided they are renting to tenants and not offering short-term holiday lets.”

Homeownership is out of reach

SpareRoom says that a decade ago, 18-24-year-olds accounted for nearly a third (32%) of those renting rooms, but by 2024, this had slipped to just over a quarter (27%).

The dominant age bracket – those in their late twenties and early thirties – still holds strong, though its share has dipped slightly from 45% in 2014 to 42% today.

Rising property prices are pushing homeownership further out of reach, with the average first-time buyer now aged 34.

This delay is reflected in the growing presence of 35-44-year-olds in shared accommodation, a group that has climbed from 13% of the market in 2014 to 16% in 2024.

Older homeowners opening their doors

It now appears that older homeowners are increasingly opening their doors to lodgers.

Over the last two years, the number of over-65s renting out spare bedrooms has jumped by 73%.

This trend offers a financial lifeline, with hosts earning £993 monthly on average in London and £661 elsewhere in the UK.

Hosts can enjoy up to £7,500 of that rental income tax-free annually under the Rent a Room scheme.