Renting later in life exposes growing financial strain – survey

New figures from the English Housing Survey show that growing numbers of people are reaching midlife and retirement still renting their home.

It also shows that the financial gap between tenants and homeowners continues to widen.

The latest release from the Department for Levelling Up, Housing and Communities reports that, in 2024/25, 29% of adults had a mortgage.

Also, 36% owned outright, 19% were private renters and 16% lived in social housing.

In London, private renting climbed to 28%, reflecting the sharper pressures facing residents in the capital.

Later life renting

Sarah Coles, the head of personal finance at Hargreaves Lansdown, said: “Renting later in life is becoming far more common – including huge numbers of people stuck in rental properties after they have had children, and some still handing over a huge chunk of their income to a landlord in retirement.

“Those aged 45-54, made up 18% of households who are privately renting – up from 15% a year earlier.

“Unfortunately, renting later comes at a horrible cost.”

She added: “Renters also tend to move far more often, which can cause problems for everyone, especially if rising rents force them into a continual cycle of renting smaller homes, further from work.

“As a result of the fact that rent is so expensive, tenants have their budgets stretched horribly thin.

“There’s a real struggle to make ends meet, let alone save for the future, which is one reason why only 52% of them had savings.

“It makes saving up for a property deposit incredibly difficult.”

What renters are paying

Private tenants faced average rents of £250 a week, although the difference between regions was stark.

Outside London, rent averaged £207, while in the capital it reached £393.

The typical mortgage payment in England stood at £242, rising to £375 in London and dropping to £220 elsewhere.

Those with a mortgage spent 19% of their earnings on housing costs, but private renters, excluding housing support, spent 39% of their income.