The number of households in the 55-64 year old age category in the PRS with an assured tenancy has risen by 118% since the turn of the last decade, according to Paragon Bank.
The number of households in the 55-64 year old age category in the PRS with an assured tenancy has risen by 118% since the turn of the last decade, according to Paragon Bank.
Moreover, the bank’s latest report, titled ‘The Growth of Later Life Tenants’, also shows that households in the 65 year old category in the PRS with an assured tenancy has risen by 93% over the same timeframe.
The data shows that 68% of over 55s said that renting suited their needs or they enjoyed renting, compared with 49% in the under 55 group, whilst an overwhelming majority, 63%, said they were pleased they do not have to worry about repairs
When the respondents were asked about their reasons for renting, 39% said they did not have a mortgage deposit, whilst 22% said they did not want the responsibility of owning a home, 16% said it enabled them to live in an area they could not afford to buy and 15% because it gave them the flexibility to move easily.
Looking to duration of tenancy, 49% of over 55s have lived in only one or two rented properties; of those who have lived in only one property, 46% of tenants have lived there for 10 years or more. The average length of time tenants have lived in the PRS is 13 years.
Furthermore, there are currently 576,000 over 55s in privately rented households, representing 16.2% of the market. This is up from 11.3% seen at the turn of the decade, according to the lender.
Richard Rowntree, managing director of mortgages at, Paragon Bank, said: “There are a number of factors that may have contributed to the increase in over 55s in the PRS over the past 10 years, such as rising divorce amongst older people, poorer pension returns and men living longer.
“With the number of over 55s forecast to rise from 30% of the population to 36% by 2043 and new household formation predicted to be driven by older, single person households, the PRS will have an increasingly important role to play in providing a home for older tenants.”
“Landlords are already reacting to the changing demographics of the PRS and, with older tenants becoming more commonplace, will have to increasingly do so. Landlords will need to consider longer tenancy agreements, the location of their property and any adjustments the property may need for later life tenants.”
