• 110% increase in households aged between 55-64 privately renting over the past decade
• 2.5m households aged over 35, compared to 1.9 aged 34 or below
• 115% increase in those living in a rented home for between 10 and 20 years

The number of middle-age and later life tenants living in privately rented homes has accelerated faster than those under the age of 35 over the past decade, Paragon Bank analysis has revealed.

Between 2011 and 2021, there has been a 110% increase in the number of households privately renting in England where the household lead was aged between 55-64 to 485,000, whilst those aged between 45 and 54 increased 50% to 691,000.

The number of households aged 65 and over hit 382,000 in 2021, up 38% on a decade before.

Conversely, the number of 16 to 24 year-old households in the private rented sector declined 3.7% over the same period to 560,000, with those aged between 25 and 34 increasing by 6% to 1.37 million.

Overall, households aged 35 or over living in rented homes totalled 2.5 million, compared to 1.9 million aged 34 or below, challenging the stereotype that the private rented sector is primarily a tenure for younger tenants.

Richard Rowntree, Paragon Bank Managing Director of Mortgages, said: “The private rented sector has evolved over the past decade and has seen strong growth in the number of middle-aged and later life tenants. The perception of rented property as being the preserve of the young is outdated.”

People are also living in their rented home for longer. There has been a 132% increase in the number of households who have lived in their home for between five and 10 years over the past decade, with a 115% increase in those living in a rented home for between 10 and 20 years.

Those living in a property for between one and two years increased by only 5%. 

Richard Rowntree added: “There could be a number of reasons for the growth in older tenants. We are seeing a greater number of people living in rented accommodation for life, plus people are releasing the equity in their homes and opting to rent instead. The growth of single person households is also driving some of the growth.

“Landlords need to consider what these cohort of tenants need. For example, those between 35 and 55 are more likely to have family, so need larger detached or semi-detached homes, whilst those in later life require simpler homes to maintain that are close to amenities. In addition, tenants want flexibility about making adjustments to their homes, or keeping a pet.”

For further information contact:

Michael Clarke
Head of Media Relations
Paragon
Tel: 07740090746

Notes to editors:

Data from the English Housing Survey live tables, published 07 July 2022.

Paragon lends to private individuals and limited companies and has mortgages suitable for single, self-contained properties, as well as HMOs and multi-unit blocks. Paragon can accommodate higher aggregate lending limits and more complex letting arrangements including local authority leases and corporate leases along with standard ASTs.

Paragon introduced its first product aimed at the professional property investor in 1995 and is a member of UK Finance, the Intermediary Mortgage Lenders Association (IMLA), National Landlords Association (NLA) and the Association of Residential Letting Agents (ARLA). 

Paragon Bank PLC a subsidiary of the Paragon Banking Group PLC which is a FTSE 250 company based in Solihull in the West Midlands. Established in 1985, Paragon Banking Group PLC has over £13 billion of assets under management and manages over 450,000 customer accounts.

Paragon Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England number 05390593. Paragon Bank PLC is registered on the Financial Services Register under the firm reference number 604551. Registered office 51 Homer Road, Solihull, West Midlands B91 3QJ.