Over-50s accounted for 15% of rented households this year
Over-50s accounted for 15% of rented households so far this year, up from just 11% in 2012 when Hamptons International’s records began, its Monthly Letting Index has found.
Nearly a third of this group are pensioners. Hamptons International estimates that this year over-50s rented 791,580 homes in Great Britain, 61% more than in 2012 (490,450) and 8.2% more than last year. As a result, over-50s will pay £9.2bn on rent this year, up from just £5.1bn in 2012 and £8.5bn in 2018.
Aneisha Beveridge, head of research at Hamptons International, said: “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.”
About £1 in every £7 paid by tenants in Great Britain now comes from a tenant aged over-50s, compared to £1 in every £9 spent in 2012.
The average cost of a new let in Great Britain rose to £977 pcm, a 2.6% year-on-year increase which was driven mainly by rising rents in the South. The South West recorded the strongest annual rental growth of 4.0%.
The South East has the highest proportion of older renters, where nearly one in five (19%) tenants are over-50s. The South West (16%), North West (16%) and Wales (15%) follow.
Meanwhile the East of England, London and Yorkshire and Humber (11%) have the lowest proportion of tenants over-50s. During the last 12 months the average tenant over 50 paid £1,000 per month on rent, 3% or £30 more than other tenants in Great Britain.
Meanwhile rents in Greater London increased 3.1% year-on-year, however this is compared with a short period of weak average rents back in May 2018.
The East and Wales were the only regions to record negative rental growth, with average rents falling -0.5% and -0.1% respectively year-on-year.
Most tenants over 50 live in two-bedroom properties (44%), with 26% choosing a three bed and 19% living in a one-bedroom home.