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Older renters set to surge in number within a few years

After a decade of steady growth, the number of older renters is poised to increase rapidly over the next 10 years according to research by Hamptons lettings agency. 

The agency warns that the slowly rising share of older households renting has been coupled with a much more rapid increase in the number of older households more generally.  

Taken together, it means the number of households renting in England aged 65 and above will double by 2030 - that’s less than seven years from now.  

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Today there are around 400,000 older households (over 65s) renting and this figure is set to pass the 1,000,000 mark in 2033.

At present households aged 65 and above have some of the highest homeownership rates in history. Growing up at a time when homeownership was rising has meant that just 5.7 per cent of households aged over 65 today rent their home privately.  

The English Housing Survey suggests that the age group succeeding them are nearly twice as likely to rent privately as those currently over 65, with rented households making up 11.1 per cent of all people those aged 55 to 64 years.

Therefore, even if homeownership rates remain unchanged, demographics mean that within a decade the proportion of over 65s renting will rise to 11.5 per cent as fewer people reaching retirement are likely to own their home. 

The growing number of older renters means that in cash terms households aged 65 and above will go from spending £5.1 billion in rent each year to £12.7 billion by 2033.  This increase assumes no rental growth and reflects rents at 2023 rates.  

To put these numbers into context, Hamptons says renters of all ages collectively hand over around £69.0 billion in rent annually.

Some 78 per cent of households aged 65 and above own their home outright.  However, the number of households aged 65 and above who are renting their home overtook the numbers with a mortgage back in 2010.  

Today, households aged 65 and above with a mortgage pay around £1.8 billion annually in repayments, less than half what gets handed over in rent.

Aneisha Beveridge, head of research at Hamptons, says: “The rising number of older renters reflects the gradual unwinding of the large increase in homeownership rates after the Second World War.  As younger generations who missed out on the homeownership boom age, growing numbers are likely to be renting when they retire.

“The recent rise in mortgage rates will make it harder to buy later in life.  It’s long been the case that if you’re not on the ladder by 40 years old, it becomes more difficult.  But higher mortgage rates will make this challenge even tougher given the difficulties in stretching a mortgage term to reduce monthly payments, particularly in the early years.

“As households get onto the ladder later in life, over the next decade there’s likely to be an increase in older households still paying off their mortgage beyond the age of 65.  

“However, this increase is likely to be a small fraction of the growing number who will be paying rent beyond pensionable age, which in turn has the potential to bear significant social, economic and political consequences down the line.”

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    What a load of old tosh are those clowns from cloud cuckoo land.
    So long winded yet left out the other half of the data, how much did landlords pay for the property how many billions is that.
    How many billions do landlords pay to lenders and Mortgage Companies annually or would you like to count to 2030.
    How many billions do landlords pay in maintenance and refurbishment costs every year.
    How many billions do landlords pay for licensing, Regulatory & Compliance work.
    How many billions do HMRC take from landlords in Taxes, SDLT and VAT every year.
    Did you mention this ? keep bleating on about rental figures as if it’s all profit and didn’t count our massive costs, expenditure and debts.

    Peter Why Do I Bother

    The other part the failed to mention Michael is the fact by 65 most people would have cleared their mortgages in line with retiring. In turn the people paying rent would be more than people paying a mortgage FGS.

    The fact that it says this was achieved back in 2010 shows the upward mobility of the country and the right path it took in the 80's to enable people to achieve this. This also shows how badly the country got it's policies wrong recently.

    I am going to Crowdfund Digging Dear Old Margaret up so she can come a crack some heads together...!

     
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    I foresee a number of problems as the proportion of renters of retirement age arises:
    1. They will not be able to retire
    2. They will need LHA to stay in the property
    3. They may stay in properties unsuitable for them as they age & become less able
    4. Maintenance with an old person in situ maybe tricky
    5. Recovering the property maybe tricky as they will be unable to move either with or without council help
    6. They may go into hospital or care or die in the property - all scenarios are not very familiar with.

    In short, a nightmare for them & not necessarily any better for the LLs.

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    Exactly Tricia, I have been aware of this problem for years, it’s a quiet and hidden future disaster.

     
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    Excellent points Tricia!

     
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    Tricia

    I take the opposite view.

    Most of the issues you fear also apply to the jobless feckless sofa surfers and if the rental market were to start operating normally again, it's much easier on theory to move to a more suitable property than it is for owner occupiers who face crippling costs in downsizing.

    I would much rather put up with the risk of the "problems" you predict with older tenants than the much higher risk of bigger problems with renting to the "entitled" vocal supporters of Generation Rant.

    Perhaps with so many sensible reliable older tenants to choose from, Landlords can transform the feckless youngsters into Generation Can't Rent?

     
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    The problem, in my opinion, Robert with renting to older tenants is that you have to make a life long committment to them. They need absolute security of tenure. As you get older - I am talking about 80 plus - or if there is any care need, you can't be subject to any form of instability in your living arrangements. I think there should be beautiful state owned retirement flats for the elderly with wonderful and appropriate facilities including the ability for extra care. There is a very good development in Winchester built in conjunction with the local authority where people can buy outright, have shared ownership or rent (affordable rent). There is 24 hour care available there as well as an on-site restaurant (low cost). It is all very smart, too.

     
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    Ellie

    I would be very happy to commit to such a long term tenancy for older tenants whose future prospects are pretty predictable and whose income is also predictable and assured.

    It's the much younger tenants where there is no predictability or reliability that I refuse to give such a long-term commitment to, hence why I no longer rent to families or even young professionals, whose desirability as tenants has been destroyed by the SNP with the same due to happen soon in England.

     
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    Robert, you are very kind.

    However, I think the accommodation has to be suitable, particularly for the very old - and if there is the availability of carers on site it makes a huge difference. I know somebody who has a retirement flat in the Winchester development, I mentioned, and she was able to come home quickly from hospital because of the availability of care where she lived. She was so happy to come back to her lovely flat. The restaurant brings food up to the flat when there is a need as well.

    I don't think we as private landlords are up to the job, even if we are going to keep our properties for the long-term.

     
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    Ellie

    I am not kind- just developing a weary sense of realism as I approach my 74th birthday.

    In my experience older people do tend to be the salt of the earth, having been born into REAL austerity during or just after the War, been punished at school, told to stand on our own two feet, work and save up for what we want and accept the world doesn't owe us anything except the opportunity to sink or swim.

    Some of these lessons would serve our younger generations well!

     
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    That is often true, but perhaps you are encountering a particularly obnoxious group of young people. The Scottish legislation may be playing a part, too -creating a false sense of entitlement.

     
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    Ellie

    To be fair, most of my student tenants are doing fairly extensive part time work during term time plus full time work in vacations and I take my hat off to them.

    However there are more ( those groups who don't get my student flats) who have coloured my views as expressed above.

    The Scottish legislation hasn't helped and has destroyed a previously successful hybrid system in Edinburgh and Saint Andrews where student flats could be refurbished in early June then let to tourists until September. The failure of many student groups to cooperate and give a decent amount of notice has led many landlords to go 100% short term rentals, adding further to the shortage of student flats and rental properties in general. England seems to be going for 2 months notice but the idiots in charge here think only four weeks notice is just fine, leaving landlords with huge problems in getting tradesmen or new tenants in such a short time frame, all contributing to a worsening position in the Scottish prs market.

     
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    To go back and add to Tricia's 6 points, and in view of the discussion between Jo and Ellie on Monday, here's a real problem...

    Like Jo's old tenant who wanted to only leave in a box, I had an older lady who often said the same.

    BUT she got bad Demantia, and would become a risk to herself and the tenant upstairs.
    Her son, living in the USA, realised I had Section 21 available, which helped him recognise the inevitable he was trying to ignore. It prompted him to organise a Dementia Care Home place for her.

    Don't know what I could have done if no Section 21 as a longstop.
    Nor if no offspring or relatives.

    I have a Duty of Care to both the tenant and the one upstairs, so can't tolerate one putting themself or another in potential danger.

    There is a need sometimes for real 'No Fault' evictions; which doesn't mean "No Reason".
    And if that means the local authorities need to house a tenant in an appropriate (care) home, then good for all concerned. It is their job in such a circumstance.

     
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    Robert - you are experienced, so you have chosen the right tenants. Perhaps there might be some tweaks to the Scottish legislation to make it less damaging to everyone; Gove wants to unify the legislation across the UK. Fingers crossed it improves matters for you.

     
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    The article didn't examine if people were renting from choice or circumstance.
    It seemed to imply renting in retirement was in some way a problem but is it really?
    People will rent in old age for many different reasons.
    1. Some will have always rented due to low pay or unemployment.
    2. Some will have lost a house in a divorce settlement.
    3. Some will have had to wait until the youngest child is 18 before receiving their share of a former matrimonial home. At which point they realise that if they want to buy a house they will have to move hundreds of miles from their job, friends and children. So the choice is move away from everything you know and buy a house or retain your current life and carry on renting.
    4. Some will choose to sell a house and rent because the property maintenance has got too much for them.
    5. Some will have been widowed and want to live in a retirement complex for both companionship and support. Depending on health and age renting is often far more sensible than buying this type of accommodation.
    6. Some will want to financially help grandchildren while they're still alive to see their money in action.
    7. Some will have bought leasehold flats and be struggling with the service charge.
    8. Some will have deliberately made the choice to remain as tenants as long as they had children and received far more in Benefit top ups than a family with a mortgage would be entitled to.
    9. Some will have made the decision that investing in other assets will allow them a far greater income with which they can afford to rent somewhere far nicer than they could buy.

    I'm sure there are numerous other reasons.

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    I have excelent over 65s tenants, they pay in full and on time, they also look after my properties well, and are nice people

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    And they're very unlikely to move in a moron boyfriend and have loads more feral kids!

     
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    Nice people. An absolute essential quality when deciding who to rent to. Normally the first thing I ask my agent. Any rudeness, Lack of manners, cannot converse civilly then app goes in round file.

     
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    Jahan, also any smell of smoking also regected

     
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    Coincidence that you should say that. One tenant gladly going

     
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    How can the number of tenants double when there is no capacity now? Headline should read. Number of homeless will double.

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    Jo, should be Housing Minister she knows the Business backwards and be fair to everyone not like those clueless Ministers.
    My problem is I didn’t retire and most of my friends that did passed away a lot sooner you don’t get away with doing nothing.
    I’m on 3rd storey roof today with hot bitumen so no time for responding.

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    Well done Michael, keeping active in body and mind is a must for living into old age, I'm on enforsed rest at present, it's driving me nuts

     
    Peter Why Do I Bother

    I second Jo being put forward for Housing Minister..! And be careful on that roof, need one doing in Preston if you're free next week...

     
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    Andrew

    Just get out the whisky a bit earlier - makes an idle day seem shorter - and if you must, make it an Irish, although it's neither spelled nor made properly.

     
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    I'm dry at present Robert not allowed any

     
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    Sorry to hear that Andrew - thought some of your recent posts sounded a bit angrier than usual - now I understand why!

    Hope it's not time to be ditching my Diageo shares?

    Seriously, get well soon!

     
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    Thank you Robert, I'm doing okay, family have all stepped upto the mark, I know they mean well but I just want to get back to work

     
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    Andrew wouldn’t you expect a Scotsman to be able to spell Whiskey (Whisky), then again if they copied it from Irish it’s easy to get it wrong.
    Bush mills 1608 Irish and Worlds oldest.
    Kilbeggan Distillery 1757 (Irish)
    Glenturret 1797 (Scotts)

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    Irish distilled 3 times makes it nicer, welsh also nice and english made in East Harrling just down the road from me

     
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    Perhaps try cocoa - there are substances in it which reduce risk of heart problems etc. They are called flavan - 3 - ols.

    And research indicates milk is OK, too.

    Not so sure that artificial sweeteners are all right.

     
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    Michael

    The Scots have been distilling whisky for thousands of years but they managed to keep it a secret long after the Irish stills were discovered by the Excisemen.

    Perhaps it's because we can hold our liquor better and not get into fights that we kept the secret longer?

    On second thoughts.........

     
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