Record number of over-50s are still living in rented homes

Renting among the over-50s has reached record highs.

More than 790,000 homes in Britain are now rented by the age group – a 61 per cent rise since 2012.

The figures, released by estate agent Hamptons International, mean that 15 per cent of rented homes are now occupied by households aged over 50, with pensioners making up nearly a third of this group.

In the South-East, where the cost of homeownership is the highest in the country, nearly one in five renters is over 50 – the largest proportion out of any region. 

Experts say a combination of rising house and stamp duty prices and changes in mortgage lending mean a growing number of families are unable to save enough for a deposit until their fifties.

The cost of renting has also risen, however. It now costs an average of £977 a month to rent, up 2.6 per cent on last year.

Aneisha Beveridge, of Hamptons, said: ‘House prices have risen more than incomes, making it harder for people to buy homes. And to make matters worse, after the 2008 financial crisis it became harder to get a mortgage after banks tightened their lending rules.’

Aneisha Beveridge, head of research at Hamptons International, said: ‘House prices have risen more than incomes making it harder for people to buy homes. 

‘To make matters worse, after the 2008 financial crisis it became harder to get a mortgage after banks tightened their lending rules. And Stamp Duty costs have risen for those buying houses at the top end of the ladder.’

The combination of those factors, says Ms Beveridge, has pushed homeownership out of the reach of many households.

The figures, released by estate agent Hamptons International, mean that 15 per cent of rented homes are now occupied by households aged over 50, with pensioners making up nearly a third of this group [File photo]

Rising rents in the South were the main drivers of the rent increases. 

Households in the South West of England saw a 4 per cent year-on-year jump in their monthly rent, going from an average of £783 in May 2018 to £814 last month.

Scotland and Greater London saw the next steepest increases in yearly rents with year-on-year rises of 3.2 per cent and 3.1 per cent respectively.

Meanwhile those living in the East of England and Wales now pay lower rent, on average, than they did last year.

Renting is not always the tenure of last resort, however. Being a tenant rather than an homeowner has many advantages for the over 50s said Ms Beveridge.

‘Renting offers households flexibility,’ she said. ‘They can try out different locations and types of houses before making a major commitment.

‘Some couples choose to rent to avoid paying Inheritance Tax by selling their house and gifting the money to their children while they are still fairly young.’ 

The responsibility to maintain and repair a rental home falls to the landlord, not the renter, which is also appealing to older tenants who do not want to be burdened with the upkeep of the property, added Ms Beveridge.