According to a report by Social Market Foundation (SMF) and Paragon, private rented households headed by someone aged over 45 currently accounts for 35 per cent of households.
The growth to around half by 2035 is equivalent to around 1.14 million additional households and brings the total of 45 plus private rented households to 2.7 million.
The report said that older tenants had different needs and desires, with their top priorities being proximity to shops, good transport facilities, being close to friends and family and proximity to health services.
Older residents were also more inclined to opt for an unfurnished properties and had a greater desire for pets compared to those aged 34 or under.
The report also found that private rented households aged 34 or under will fall from 39 per cent to 35 per cent. Those aged 35 to 44 are expected to show the biggest decline, falling from 25 per cent now to 15 per cent in 2035.
It also said that households privately renting would grow from 20 per cent currently to 22 per cent in 2035 and home ownership would fall from 63 per cent now to 61 per cent in 2035.
SMF’s survey of over 1,300 tenants revealed that 61 per cent of tenants aged 35 to 54 expect to still rent in 15 years’ time, which compares to 32 per cent of those aged 34 or under.
Richard Rowntree, Paragon Bank’s managing director of mortgages, said that the UK had an ageing population, and the private rented sector would need to adapt.
He explained: “The challenge for the private rented sector is how to adapt to accommodate more mature tenants, including where and how they want to live.
“The SMF tenant research shows that more mature tenants want greater security in the form of longer tenancies and control over their property, such as the freedom to make cosmetic changes. They also want to have pets in their homes and these are all things landlords need to consider.”
Amy Norman, SMF senior researcher and one of the report’s authors, said that a typical renter in the future will look different, and will be older, and this will depend on factors such as rates of construction, interest rates, house price inflation and government housing policy.
She added: “That reality means we need to revisit our preconceptions about renting being the preserve of young, mobile households. Mature tenants have different needs and preferences. They want accessible, ground-floor homes within a stone’s throw of shops, transport links, health services, and their loved ones.
“Policymakers, developers, and landlords therefore face a challenge ahead to future-proof the private rented sector and ensure that renting policies and homes are suitable for all tenants, including those who are renting for longer and into later life.”
