Middle-aged renters surge by 70pc as house prices rise

‘Older people are renting as they are concerned about high interest rates and property values’

THE number of middle-aged renters has risen by 70 per cent in a decade, according to new analysis.

Soaring property prices have pushed home ownership out of reach for even people in their 40s, 50s and 60s, 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 70 per cent compared with the 691,000 recorded in 2011, according to analysis of official data. The number of households with a lead tenant aged over 65 jumped by almost 40 per cent in the same period, rising from 276,000 to 382,000.

It comes as there has been a rise in renters of all ages in recent decades.

The middle-aged renters belong to a growing generation of “lifetime renters” who face increased housing insecurity and financial hardship in retirement, according to the report.

Almost half of older renters also have a disability or long-term illness, according 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 among tenants of all ages.

The average house price is more than 70 per cent 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 that 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 in London, said that he had seen a rise in older renters this year.

Mr Stone said: “They are mostly renting because they are concerned about high interest rates [and] the uncertainty around property values.”