The changing age of tenants

The Social Market Foundation, an independent think tank, has recently published a report titled, “Where next for the private rented sector?“, an interesting read for any landlord. 

The report identified the changing nature of renters, and whilst there are currently 35% who are aged 45 or over, this is projected to rise to half by 2035.

These projections were modelled by housing market trends experienced in the decade from 2009 to 2019, which also identifies a further growth in the rental sector, where the proportion of rented households will rise from 20% to 22%.

The socio-economic situation is a key indicator in this report; the aging population.

SMF's report identified that 61% of tenants in the 35-54 age bracket expect to be renting in 15 years' time, whilst 80% aged 55 or older expect their situation to remain the same.

Whilst growth in the private rental sector is predicted, there are challenges ahead with how to adjust to the “aging tenant”.

With age, housing requirements change. More mature tenants will potentially want greater security with longer tenancies and freedom to make some cosmetic improvements. Accommodation for pets and children becomes a more frequent need, as does access to outdoor space.

What's important to those in the younger age bracket will differ; SMF's report highlighted that important location features for the older tenant include close proximity to shops, friends and family, and health services, all of which were of a lesser value for the younger audience.

Whether a property is furnished or unfurnished will also appeal to a different audience. The younger demographic prefer furnished, stepping into their first home, whilst the older generations look for unfurnished. 

It's clear to see, that with a changing audience of tenants, landlords would be wise to consider their likely tenants.

To see how our expert team can help you to find your ideal tenant, contact (01252) 514000, or email, lettings@mackenziesmith.co.uk.

Sources:

Where next for the private rented sector?

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