According to leading estate agency Hamptons, the number of older people renting their homes is projected to double by 2030. After observing a steady increase in the total number of older renters in recent years, the agency predicts that this trend will gain significant momentum.
While the proportion of older households choosing to rent has been gradually rising, it has been outpaced by the substantial surge in the overall number of older households. This combination of factors indicates that the number of households renting in England among individuals aged 65 and above will experience a twofold increase within the next seven years.
Presently, there are approximately 400,000 households headed by individuals aged over 65 who are renting their homes, with this figure expected to surpass the one million mark by 2033.
At present, only 5.7% of households aged over 65 rent their homes privately. However, data from the English Housing Survey suggests that the subsequent age group is nearly twice as likely to opt for private rentals. Currently, rented households account for 11.1% of individuals aged 55 to 64.
The overwhelming majority (78%) of households aged 65 and above presently own their homes outright. Nevertheless, the number of older households renting their homes surpassed those with mortgages back in 2010.
Aneisha Beveridge, Head of Research at Hamptons, explains, “The increasing number of older renters reflects the gradual decline in homeownership rates following the post-World War II homeownership boom. As younger generations, who missed out on this boom, grow older, more individuals are likely to choose renting as they retire.”
Beveridge further elaborates, “Since households are getting onto the property ladder later in life, we can expect an increase in older households continuing to pay off their mortgages beyond the age of 65 over the next decade. However, this rise is expected to be a small fraction compared to the growing number of older individuals who will be paying rent well into their pensionable years.”