According to research carried out by Hamptons International, for its Monthly Letting Index, the over-50s now account for around 15 per cent of rented households. The figures were taken from letting records so far this year. This figure is up from 11 per cent of lettings in 2012.
Approximately one-third of this older group were pensioners. Hamptons estimates that in the current year, the over-50s have rented 791,580 homes in Great Britain, which represents an 8.2 percent increase over last year, and 61 per cent more than in 2012, when the comparable figure was 490,450. As a result, Hamptons estimates, the over-50s will pay around £9.2bn in rent this year alone, up from just £5.1bn in 2012 and £8.5bn in 2018.
Aneisha Beveridge, head of research at Hamptons International, says:
“The number of over-50s renting in Great Britain has reached a record high.
“With younger generations much less likely to be homeowners, tenants are getting older, and an ever more diverse group of people are calling the rented sector home.
“Rising rents in the South drove rental growth in Great Britain in May. The South West recorded the strongest rental growth, with rents rising 4.0% year-on-year. Wales and the East were the only regions to record small rent falls.”
Mortgage Introducer reports that around £1 in every £7 paid by tenants in Great Britain, given Hamptons International’s estimates, now comes from tenants aged over-50, compared to £1 in every £9 in 2012.
Hamptons reports that the average cost of a new letting in Britain reached £977 pcm in 2019, representing a 2.6 per cent year-on-year increase, driven mainly by rising rents in the South. The South West accounted for the strongest annual rental growth of 4.0 per cent.
Further figures produced by the report include The South East, with the highest proportion of older renters, where nearly one in five (19 per cent) of tenants are over-50. The South West (16 per cent), North West (16 per cent) and Wales (15 per cent).
The East of England, London and Yorkshire and Humber at 11 per cent showed the lowest proportion of tenants over-50.