Number of midlife renters doubles

The number of middle age households privately renting is growing rapidly, creating an important opportunity for buy-to-let investors.

Based on analysis of government data, mortgage lender Paragon Bank report that the number of households where the lead reference person is aged  between 45 and 64 has risen from 700,000 in 2011 to 1.8 million today.

The report adds that this age group is the fastest growing in the private rental sector, followed by the over 65s, which have increased by almost 40%.

Richard Rowntree, Paragons's managing director of mortgages, 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 65 age bracket."

Around half of midlife renters would like to buy a home but are constrained by finances, both saving a deposit and raising a mortgage. Just a third are actively saving for a home.

Mr Rowntree added this "suggests that they will remain in rented accommodation for the long term. This has implications for the type 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."

Investors who value long term stability will find this demographic very attractive, with half having lived in the same home for five years or more.