Number of middle-aged people renting property doubles in last decade
New data, analysed for and by BBC News, has found that forty-somethings are now almost twice as likely to be renting property from a private landlord when compared to ten years ago. The study found that rising UK house prices over the last decade have left many middle-aged people unable to afford to buy their first home, while some have been left as “accidental renters” following a relationship break up.
The analysts said that the current focus on getting young first-time buyers onto the property ladder has left many older tenants, many of whom have children, ignored. Analysts have also raised concerns over the social and economic impact on these middle-aged tenants.
Many middle-aged tenants to feel the stain in the future
The data, studied by property market analysts Hometrack, found the number of 35-54-year-olds in the UK who live in a privately-rented property has nearly doubled in the last ten years, with the data supplied by a Family Resources Survey conducted by the Department for Work and Pensions. The data also found that many middle-aged renters are now living in private homes, rather than homes owned by the council or a housing association.
In addition, there has also been a significant rise in the number of 45-50-year-olds renting property as a result of death, divorce or debt, while debt charities are increasingly concerned about single parents with children who rent.
The latest figures also show that over the last decade, the percentage of people renting their home from private landlords increased across all age groups, while the number of homeowners with a mortgage in the working age fell. The Family Resources Survey found that across the UK, 20% of households were renting privately by 2017, compared to 28% of households with a mortgage. 34% of households owned their home outright, while 17% were in the social renting sector.
The chief executive of the Homeowners’ Alliance Paula Higgins said that the increasing number of middle-aged renters will increase the danger of social inequality between those who own their own home and those who don’t. Richard Donnell from Hometrack also added that the increase in middle-aged renters will likely cause a strain on the benefits system in 15-20 years’ time, when many of these tenants will require financial assistance to pay their rent on their pensions.
Renting due to divorce or redundancy
In addition to the data from BBC News, additional data by Shelter found that two-thirds of private renters with families wished that their children did not have to live in privately-rented properties. The data found that a fifth of those surveyed had moved from one privately-rented property to another within the past five years, with one in six forced to move by their landlord.
The debt charity StepChange also revealed that many of the people seeking help for debt problems were tenants, with a significant proportion of these being single parents. The charity revealed that many of these tenants found themselves in debt due to a financial shock such as divorce or redundancy. Those who leave long-term relationships due to divorce are also described as “accident renters” as they’re forced to rent in order to stay in the same areas as their children.
Are you a landlord looking to rent out your property in Cardiff, or perhaps a tenant looking for a new property? Whatever your needs, CPS Homes can help. As Cardiff’s largest letting agent, we have the experience and knowhow to help you find your dream property or achieve the best possible return on your investment. To find out more, contact us today on 02920 668585, email: enquiries@cpshomes.co.uk, or pop into our Woodville Road office in the heart of Cathays.
