• The number of households aged between 45 and 64 privately renting has increased 70% in 10 years, more than any other age group
• Half of this age bracket want to buy, but only a fifth saving towards a deposit
• Over a fifth of those aged between 45 and 64 have lived in privately rented accommodation for more than 15 years, with a further 17% in the sector for between 11 and 15 years

The number of middle-aged households privately renting has nearly doubled in the space of a decade, with many set to remain in rented homes for the long-term, Paragon Bank analysis of Government data shows.

The number of households in England where the lead reference person is aged between 45 and 64 has increased from 691,000 in 2011 to 1.18 million in 2021, a 70% increase.

This age group experienced the greatest growth in the number of households in the private rented sector (PRS) over the period. The number of households aged 65+ privately renting increased by 38%, with those aged between 34 and 44 increasing by 21%. The 16-34 year-old group increased by just 3%.

A Paragon survey of over 2,000 tenants showed that whilst the desire to own a home is high amongst the 45-64 age group, the ability to buy is inhibited. Nearly half of this age group (47%) has a desire to buy their own home, yet only 19% are actively saving towards buying a property.

Of the 19% actively saving to purchase a home, 25% have their finances in place and are searching, with 4% in the process of purchasing. The remainder (71%) are in the savings phase.

Another issue facing this group is income. Just 14% of those in the 45-64 age bracket have an annual income in excess of £50,000, with a quarter earning less than £10,000 per year and a similar proportion earning between £30,000 and £50,000, inhibiting the ability of tenants in this bracket to save for a deposit and limiting their ability to obtain and service a mortgage.

A home for the long term

Tenants aged 45 or over have been renting for longer, lived in more properties and tend to stay longer in the same home than those younger. They are also more likely to live alone when compared to the younger cohort.

Over a fifth of those aged between 45 and 64 (22%) have lived in privately rented accommodation for more than 15 years, with a further 17% in the sector for between 11 and 15 years. Conversely, those under 45 typically have spent less time in rented homes, with nearly seven in 10 living in the sector for less than five years.

Just under a quarter of over 45s (23%) have lived in their current rental home for more than 10 years, with 22% living in the same home for between five and 10 years. This suggests that older tenants view their rental home as long-term accommodation.

Richard Rowntree, Paragon Bank 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 adds: “Just a fifth of 45-64-year-olds are actively saving towards buying a house, which suggests that they will remain in rented accommodation for the long-term. 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.”

For further information contact:

Jordan Lott
Media Relations Manager
Paragon
www.paragonbank.co.uk 

Notes to editors:

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.