Older renters a fast growing market for buy to let

The Social Market Foundation's recent analysis found that homes rented by tenants over 45 will account for more than half of all privately rented households by 2035.

The report produced for Paragon Bank found that 35% of privately rented homes are headed by someone aged 45 or older.

The Foundation's projections showed that this will rise to 50% by 2035, equivalent to an additional 1.1 million homes.

Their modelling is based upon housing trends from 2009 to 2019 which also showed the private rental sector growing from 20% of households to 22% by 2035, with home ownership falling from 63% to 61%.

According to Richard Rowntree of Paragon bank ​“The UK has an aging population and projections show that the population will generally be older in the coming years. This is reflected in the SMF’s modelling, which highlights that a growing proportion of older households will live in privately rented accommodation in the next 15 years."

Amy Norman, one of the report's authors believes that the profile of future renters will be different from today's, with different priorities.

“That reality means we need to revisit our preconceptions about renting being the preserve of young, mobile households. Mature tenants have different needs and preferences. They want accessible, ground-floor homes within a stone's throw of shops, transport links, health services, and their loved ones."

“Policymakers, developers, and landlords therefore face a challenge ahead to future-proof the private rented sector and ensure that renting policies and homes are suitable for all tenants, including those who are renting for longer and into later life.”