Yahoo Finance Midlifers stuck renting as number of tenancies soars 70pc
Hundreds of thousands of midlifers have been sentenced to a lifetime of renting, a new report has warned, after a 70pc rise in the number of tenants in their 40s, 50s and 60s.
Soaring property prices have pushed home ownership out of reach for a generation of middle-aged renters, according to analysis by Paragon Bank.
There were 1.18 million households with a lead tenant aged between 45 and 64 in 2021 – a rise of 70pc compared with the 691,000 recorded in 2011, according to analysis of official data.
Soaring house prices have eroded the prospect of home ownership for many people and there has been a steady rise in renters of all ages in recent decades. The number of households with a lead tenant aged over 65 jumped by almost 40pc in the same period, rising from 276,000 to 382,000.
They belong to a growing generation of “lifetime renters” who face increased housing insecurity and financial hardship in retirement, the report said. Anyone relying on the state pension for income in retirement will be stretched after years of sustained rental price growth and older tenants struggle to compete with those who are younger and employed.
Almost half of older renters also have a disability or long-term illness, according to separate analysis by charity Age UK, exacerbating financial challenges for many.
Richard Rowntree, of Paragon Bank, warned older renters had been neglected by policies aimed at getting younger people on the housing ladder.
Mr Rowntree said: “There is a perception that the private rented sector is home to the young, but more than half of tenants are aged over 35.
“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 are long-term renters.”
More than a fifth of middle-aged renters have lived in rented accommodation for more than 15 years. Significant house price growth has pushed affordability to a record low, acting as the biggest barrier to buying a home amongst tenants of all ages.
The average house price is more than 70pc higher than a decade ago having risen from £170,295 in September 2012 to £294,559 in the same month this year.
A survey of 2,000 tenants by Paragon Bank found half of middle-aged tenants wanted to buy their own home, but less than a fifth were actively saving towards a purchase.
Jack Stone, of Draker Lettings, a lettings agency in London, said he had seen a noticeable increase in older renters this year.
Mr Stone said: “They are mostly renting because they are concerned about high interest rates in the current climate and the uncertainty around property values.”
Research by think tank Phoenix Insights earlier this year found a third of current renters still expected to be paying rent in retirement – equivalent to 11 million people.
