A rise in middle-aged and older tenants using rented accommodation has led to calls for the sector to ‘adapt and evolve’ to cater for the changing needs.
The number of households in the private rented sector with people aged between 45 and 64 has increased by 70% over the last year according to analysis of government data by Paragon Bank.
The report, The middle-aged tenant surge, also revealed households with people aged 65 or over had increased by as much as 38%.
On the one hand, this is good news for landlords. Indeed, said Paragon, older tenants tended to prefer to have longer tenancies (65%), were more respectful of neighbours and the community (63%) and were reliable (58%).
However, it also meant landlords might need to look at making changes to their homes as this trend looked set to set continue.
Richard Rowntree, managing director of mortgages at Paragon Bank said: “The idea that the private rented sector is the tenure of the young is outdated.
“Over half of tenants today are over the age of 35 and, if current trends continue, the average age of tenants living in the sector will only rise.
“As with other distinct tenant groups – young couples and students to name but two – older tenants have their specific requirements.
“Over 65s are more likely to live alone and in smaller homes, for example, and the sector will need to adapt and evolve to cater for this ageing tenant population.
“Landlords will need to target smaller homes and be prepared for their tenant to adapt the home to suit their needs.”
The study found nearly half of landlords were prepared to make changes to their property to accommodate the needs of older tenants
What’s more the research, conducted on behalf of the bank by BVA BDRC, found the 800 landlords quizzed would invest an average amount of £985 to make these changes.
In fact, 21% of landlords would invest up to £1,000, with 11% investing up to £3,000 to adapt the property and 5% would invest £5,000 or more.
Rowntree added: “The good news is that landlords have a strong track record of meeting the needs of their tenants and I’m confident that they will be ready to respond to meet this changing demographic.”
