The number of middle-aged tenants rockets

The number of middle-aged tenants rockets

11:47 AM, 5th December 2022, About A year ago 6

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The number of middle-aged tenants who are privately renting in England has rocketed by 70% in the last 10 years – that’s more than any other age group.

The findings from Paragon Bank highlight that half of those aged between 45 and 64 want to buy a home, but just one-fifth of them are saving for a deposit.

And more than one-fifth have been living in a privately rented home for more than 15 years, and 17% have been renting for between 11 and 15 years.

Paragon has analysed government data to show that there are now 1.18 million people aged between 45 and 64 in England’s PRS.

Number of tenants aged over 65

The data also shows that the number of tenants aged over 65 grew by 30% over the same period, for those aged between 34 and 44, there are 21% more tenants while those in the 16 to 34 age group grew by just 3%.

Along with a desire for home ownership amongst those aged between 45 and 64, their ability to buy is restricted with just 19% saving to buy a home and, of these, 25% say they have their finances in place and are searching for a property and 4% are buying currently.

However, another big issue facing middle-aged tenants wanting to buy is their income levels with just 14% earning more than £50,000 and a quarter are earning less than £10,000 every year which makes it very difficult to service a mortgage.

The Paragon findings also show for tenants aged over 45, tend to live in more properties and remain in them for longer than younger tenants do. This age bracket is also more likely to see renters living alone than younger tenants.

Renting their current property for more than 10 years

The data also shows that 23% of tenants aged over 45 have been renting their current property for more than 10 years, and 22% have lived in the same property for between five and 10 years – this, Paragon suggests, means that older tenants see their rental property as long-term accommodation.

Paragon’s managing director of mortgages, Richard Rowntree, said: “There is a perception that the PRS is home to the young when, in fact, over half of tenants are aged over 35 and the greatest increase in the number of households is in the middle-aged 45 to 64-age bracket.

“Too much policy focus is on getting younger tenants on the housing ladder. Whilst this is important, the Government should also consider the need to provide a home to older tenants who live in the PRS for the long-term.”

He added: “Just a fifth of 45-64-year-olds are actively saving towards buying a house, which suggests that they will remain in rented accommodation for the long-term. This has implications for the types of property that this group will live in as they age; for example, there may need to be an increase in one or two-bedroom properties and landlords will need to be open to property adaptions.

“Ensuring there is a supply of property in the PRS to cater for their needs is vital.”

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12:49 PM, 5th December 2022, About A year ago

It would be interesting to know how many of those in the 45-64 bracket are renting because of a marriage/relationship breakdown, and if so how many of those can't buy because they're paying out towards their former home/family as well as their personal costs of living. This could skew the quoted figures quite drasctically.

Contended Ted

16:41 PM, 5th December 2022, About A year ago

Reply to the comment left by Raz at 05/12/2022 - 12:49
I am sure that you are right Raz. It will be a problem to this age group as one property doesn’t usually split into enough for two and also they have run out of years to get a long mortgage. If they have lost a career, a “job” pays much less. Many of us landlords are also no longer as employable as we once were.

The Forever Tenant

16:45 PM, 5th December 2022, About A year ago

I don't know about relationship breakups, but I am certainly someone in the category of this article.

I live with my wife and child in the home that we rent and have been here for around 5 years now. I certainly hope that I will be able to stay for as long as I wish, but I do worry that it may all come to an end if for whatever reason our Landlord wishes us to leave.

I have been saving as much as I can, however that savings number has started to go down with the cost of everything going up.

My biggest issue with getting a property is down to the salary multiplier. Even getting the absolute maximum I can, it would not buy anything of any reasonable quality near me. And thats with me earning over the UK average.


17:07 PM, 5th December 2022, About A year ago

Reply to the comment left by The Forever Tenant at 05/12/2022 - 16:45If location isn't negotiable, then another option for you may be to buy a property you CAN afford and rent it out, while continuing to rent personally in the area you like. The capital gain over time might enable you to eventually sell your BTL and buy in your preferred location.
You can also try asking your useCredit ladder/Credit builder to help.

Contended Ted

20:06 PM, 5th December 2022, About A year ago

Reply to the comment left by The Forever Tenant at 05/12/2022 - 16:45Forever tenant thanks for sharing your predicament. As a landlord I can’t offer a forever home. My kids don’t want to inherit a portfolio because they don’t want the responsibility, so it would be auction time. There doesn’t seem to be much innovation in mortgages, such as a mix of repayment and interest only or staircasing. When I took my first mortgage on a ten percent deposit I took out indemnity insurance. It doesn’t seem to be about any more.

Stephen Bale

18:22 PM, 7th December 2022, About A year ago

Reply to the comment left by The Forever Tenant at 05/12/2022 - 16:45
In the case you mentioned, why not look at buying a buy to let in a cheaper area you can afford while still renting where you are. the rent you can earn should cover not only the mortgage but also some additional income which can then be added to your salery further down the line towards your forever home, or use it to repeat and buy another rental. Buy to let's rely a lot less on personal income and more on the properties income. For an example in my area newport in Wales, can still get a 3 bed for 150k ish, at current rates interest only mortgage would be about £400pm, repayment about £660. The rental income will be about £900pm giving a healthy cussion should rates rise in 5 years when you renew a fixed term. The additional income from the property (about £500 every month if interest only) can either to towards a second buy to let, be additional income or make payments against the capital. In future can borrow against any capital appreciation on the buy to let

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