Buy to let landlords looking to the future might think about appealing to an older generation of renters, following a new report.
The study by the Social Market Foundation (SMF) reveals an ageing population of renters with more than half projected to be over 45 by 2035.
According to the SMF research, older renters also have different priorities, prizing close proximity to shops, transport and health services more highly than younger age groups. The over 55s are also more likely to want an unfurnished property and the ability to keep a pet.
The study found that 35% of households are headed by somebody aged 45 or over, a figure which will rise to half over the next 13 years, equivalent to 1.14 million extra mature households.
In total, the proportion of the population renting will rise from 20% today to 22% by 2035. The number of home owners will fall from 63% to 61%.
The research, conducted for Paragon bank uses market trends recorded between 2009 and 2019. Richard Rowntree, the bank’s Managing Director of Mortgages said: “The challenge for the private rented sector is how to adapt to accommodate more mature tenants, including where and how they want to live.
“The SMF tenant research shows that more mature tenants want greater security in the form of longer tenancies and control over their property, such as the freedom to make cosmetic changes. They also want to have pets in their homes and these are all things landlords need to consider.”
The finding showed that 81% of renters over 55 and 61% of those aged 35 to 54 expect to be renting in 15 years’ time, compared to a third (32%) of renters under 35.
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