If you think the rental market is made out of purely young professionals and students then the time has come to think again. Retired people account for 8% of people who rent in 2017, compared to 5.2% in 2007. This fast rising trend means that pensioners spent a record £3.7bn on rent in the past year.
As a landlord, are you thinking about this trend for your properties? As a rule, ‘silver renters’ (those over 55) require smaller properties that other tenants, as they are more likely to live on their own (with 75% opting for a one or two-bedroom apartment, compared with 66% of all tenants).
They are also likely to want longer leases, as they are happy to remain in a rented home and are not looking to buy a property.
Why are they renting?
The sharp rise is older renters is attributed to rise in divorces older in life, as well as increasing house prices.
Separate divorcing parties are not able to both buy their own homes after selling the family home. When they approach the rental market, they are looking for properties that are family orientated, secure and well-managed.
A recent Your Move survey says that around 18% of the UK’s 4.5 million private renters are aged over 55, while a further 22% are aged between 46 to 55. Of the over 55s, 46% were happy to stay in a rented home, and were not looking to buy a property. Only 19% of that age group want to get on the property ladder.
The study also predicted that the number of private renters will jump from 4.5 million to 6 million over the coming few years.
According to research by Countrywide, retired people are accounting for a larger part of the rental market, spending a record £3.7bn on rent in the past year, more than triple the amount they paid in 2007.