New analysis of the private rented sector shows an 80% surge in the number of people renting aged between 55 and 64 over the last ten years, according to a new report from The Mortgage Works.
The report provides a snapshot of the sector, which forms an important part of the UK’s housing composition.
Damian Thompson, Director of Landlord at The Mortgage Works, comments: “Understanding the dynamics of the private rented sector has never been so important. The sector continues to support the lives of millions of people across the UK by providing homes for those who either can’t afford to buy or prefer not to own a home.
“We look forward to understanding the new government’s plans to create a stronger, fairer private rented sector, where legislation works for both landlords and tenants.
“The Mortgage Works report provides in-depth market analysis that will help identify trends and the critical areas we must collectively address if we are to make a difference.”
Overview of key findings in the report:
- Dramatic shift in the number of people renting aged between 55-64: The report shows an 80% surge in private rentals over the past decade for this age group. This trend is in contrast to the continuous drop-in homeownership rates amongst 55–64-year-olds, which is now c.10% lower than its 2007 peak.
- London led the rise in private renting across England: Due to high house prices (and more recently, higher mortgage costs), close to one in three (30%) households are opting to rent privately in the capital, nearly double the rest of England.
- Rapid growth in (professional) landlords: The proportion of landlords owning five or more properties has more than tripled from 5% in 2010 to 18% in 2021. These landlords wield substantial influence, commanding almost half of all tenancies.
- Impending interest rate impact: With around 350,000 buy-to-let fixed-rate mortgages set to mature in the next year, those refinancing face potential payment shocks of around £225 per month, potentially impacting rental market dynamics.
- Office for National Statistics (ONS) data reveals unprecedented annual rental growth in recent years: Growth reached double digits in some regions, underscoring the high demand for rentals amid dwindling supply and barriers to prospective first-time buyers.
