Landlords stand to benefit from a larger pool of potential tenants as middle-aged people struggle to become homeowners, it has been revealed.
New research suggests more older people are renting because they can’t afford to buy a home of their own.
It found that the number of people aged between 35 and 54 years old who rent their home has risen by 15 per cent in the past three years.
And for those in the upper part of that age bracket, the issue is becoming more widespread, with the number of tenants aged between 45 and 54 rising by a third since 2016.
The study by Intus Lettings connected the decrease in those being able to afford to buy a property to the strict mortgage criteria being imposed by lenders.
For example, they require borrowers to have a large deposit, with even a five per cent deposit on an average property being the equivalent of almost £11,500.
This is based on latest figures from Halifax showing that the average house price in Britain stands at £229,729, which is around £6,613 more expensive than the same time last year – a rise of £551 per month.
Hope McKendrick, Lettings Manager at Intus Lettings, said: “With the cost of rent rising faster than wages, it’s no surprise that an increasing number of people find themselves unable to save up for a deposit to buy a home well into their 40s, 50s and beyond.”
The report found that younger tenants are more optimistic about the chances of owning a property in the future – even though most of them said they were putting aside less than £50 a month towards one.
While 43 per cent of tenants aged between 18 and 24 said they couldn’t afford a deposit, just under 20 per cent of tenants over 55 believe they’ll ever be able to afford to buy a property.
The rise in middle-aged tenants is a welcome trend for landlords as it means demand remains high for rental properties.
This comes as separate research suggests that the average rent in England and Wales stands at £864 a month.
The figures from letting agents Your Move found that the most expensive place to rent continues to be in London, where typical values have reached £1,263 a month.
Have you seen a rise in the number of middle-aged tenants? Let us know about your experiences in the comments
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22 June 2020 • 9-minute read
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