According to research from Paragon, which examines government data, households where the lead reference person aged between 45 and 64 has risen from 691,000 in 2011 to 1.8 million as of 2021.
The report added that this age group experienced the greatest growth over this period, with the number of households aged 65 and over rising by 38 per cent and those aged between 34 and 44 going up by 21 per cent.
Private renters in the 16 to 34-year-old bracket rose by around three per cent.
Middle-aged renters want to buy a home but struggle to save
Paragon also found that private renters aged 45 to 64 have strong desire to own a home but have limited ability to buy.
Nearly half, 47 per cent, want to buy a home, but only 29 per cent are actively saving towards a deposit.
Of the 19 per cent that are saving to buy a home, a quarter have their finances in place and are searching, whilst only four per cent are in the process of purchasing. The remaining 71 per cent are still saving.
Income is also an issue, with 14 per cent of the 45 to 64 group’s annual income exceeding £50,000. A quarter earn less than £100,000 per year and similar number earn between £30,000 and £50,000.
Paragon said this limits the ability of tenants in this age bracket so save for a deposit and impacts their ability to secure and pay a mortgage.
Older tenants likely to rent for longer and stay in one home
Tenants aged over 45 have also rented for longer, lived in more properties and tend to stay longer in one home.
More than a fifth of those aged between 45 and 64, 22 per cent, have lived in the private rented sector (PRS) for over 15 years and a further 17 per cent had lived in the sector between 11 and 15 years.
This compares to those under 45, with nearly seven in 10 living in the sector less than five years.
Around 23 per cent of over 45s have lived in their current rental home for more than 10 years and 22 per cent lived in the same home for between five and 10 years.
Paragon said this suggests “older tenants view their rental home as long-term accommodation”.
Richard Rowntree (pictured), Paragon Bank’s managing director of mortgages, said: “There is a perception that the PRS is home to the young when, in fact, over half of tenants are aged over 35 and the greatest increase in the number of households is in the middle-aged 45 to 64 age bracket.
“Too much policy focus is on getting younger tenants on the housing ladder. Whilst this is important, the government should also consider the need to provide a home to older tenants who live in the PRS for the long-term.”
He continued that with just a fifth aged 45 to 64 actively saving to buy a home this “suggests that they will remain in rented accommodation for the long-term”.
Rowntree said: “This has implications for the types of property that this group will live in as they age; for example, there may need to be an increase in one or two-bedroom properties and landlords will need to be open to property adaptions. Ensuring there is a supply of property in the PRS to cater for their needs is vital.”
