UK: The latest report released by The Mortgage Works has highlighted an 80 per cent uptick in private renting for tenants between the ages of 55 and 64 over the past decade.
However, the report also outlines how this phenomenon correlates to an ongoing decline in home ownership among the same age demographic.
According to The Mortgage Workers, there has been a 46 per cent surge in the number of over-65s living in private rental accommodation compared to 2013 figures.
On a regional scale, almost a third [30 per cent] of London households are renting privately. This is in stark contrast to the rest of the country, with the figure coming in at almost double what is seen across other regions in England.
Among the other highlights from the report:
• The proportion of landlords owning five or more properties has more than tripled from five per cent in 2010 to 18 per cent three years ago
• Less than ten per cent of landlords have joined the market in the last three years, as opposed to just over half of existing landlords who have been in the market since 2013 or earlier
• The proportion of private rented accommodations located in urban areas grew from 36 per cent to 43 per cent in 2022
• Suburban locations make up 48 per cent of currently available private rented sector [PRS] stock, and rural areas account for the remaining eight per cent
• Flats and terraced homes are the most popular types of PRS properties, standing at 40 per cent and 35 per cent of all rental dwellings respectively
The report published by The Mortgage Works goes on to suggest that while demand for private rented accommodation will grow in the coming years, rising borrowing costs will continue to exert pressure on the sector at the current rate.
Damian Thompson, director of landlord at The Mortgage Works, said: “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 PRS, 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,” he added.
The full report can be accessed now at this link.
