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Older households living in privately rented homes to soar by 2035

Homes headed by a person over the age of 45 will account for at least half of all privately renting households by 2035, analysis conducted on behalf of Paragon Bank has found. 

A report by the Social Market Foundation (SMF), Where next for the private rented sector?, found that 35% of households currently private renting are headed by somebody aged 45 or over. This will rise to half of households by 2035 according to the SMF’s projections, equating to an additional 1.14m households, bringing the total number of 45+ households to 2.7m.  

Conversely, the proportion of households in the sector where the head is aged 34 or under will fall from 39% today to 35%. Those in the 35-44 age group will experience the greatest decline, falling from 25% of households today to 15% in 2035. 

The SMF modelled its projections on housing market trends experienced between 2009 and 2019. Overall, it forecasts that the proportion of total households privately renting will increase from 20% currently to 22% in 2035, with those in home ownership falling from 63% to 61%.

Amy Norman, SMF senior researcher and one of the report authors, said: “The typical renter of the future will look different from today’s. How different will depend on a range of factors including rates of construction, interest rates, house price inflation and government housing policy. That said, one thing is clear: the private rented sector will be getting older.”

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