Landlords, have you read a recent BBC report about the number of middle-aged renters? The report states that many people over forty are now renting from private landlords rather than buying their own property. As property prices in the UK have risen dramatically, many middle-aged workers are unable to afford a new home. They have turned into “accidental renters”, which is good news for landlords.
Since 2006-2007 the number of 35-54 year olds who are private tenants has almost doubled according to the Family Resources Survey 2016/17.
More data that was analysed by the BBC:-
- Those people in most age groups who usually rent from private landlords rather than from housing associations or their local council.
- Single parents who have children. This is a huge concern among debt charities.
- The social inequality of people who are homeowners and those who aren’t.
- Future strain on the benefits system. Say in 15-20 years’ time when many tenants will need financial help so they can pay their rent.
- Sharing rented property which is becoming a necessity for some people.
Many families now live in rented homes as they are unable to buy even the cheapest property on the market. Charities have said this affects families and the financial life of tenants. Shelter for instance, the housing charity, have highlighted that two thirds of renters who have families wish they didn’t have to live in private rented homes. Many people move from one rented property to another numerous times which often upsets children’s education.
Accidental renters are those people who:-
- Often struggle with money having been divorced or separated from their partner
- Have been made redundant from work
- Are single parents
- Are stretched with their finances
- Have a low wage
With the cost of living going up and up, couples, singles and young people are finding it more and more difficult to cope. Renting provides a slightly easier way of living. A landlord has to carry out repairs and make sure everything in the property is in good working order.
Buying or renting?
Many households in the UK were renting from private landlords in 2017 compared to approximately 28% home owners. 34% owned their home while 17% were in the social renting sector. Those who did rent were in the age bracket 25-34 while more 35-44 year olds rented after the financial crisis. The figure doubled from 13% to 26% for private renters.
The percentage of 45-54 year olds who rented from private landlords rose from 8% to 14%. Around a third of young people are expected to rent property rather than buy. Affordable homes for those buying for the first time was the government’s aim along with more protection for people who do rent. It was suggested the tax system should be altered to discourage people buying second homes. Rent increases were also mentioned with stabilisation policies to limit increases being reviewed.
Read more on the decision to rent or buy here in one of our previous blog posts.
Landlords have said any type of control over rent would not be a good move. If you’re a landlord and need more information on how to get your property onto the rental market, feel free to get in touch.