The latest data from The Mortgage Works revealed an 80% surge in private rentals for tenants aged between 55-64 over the past decade.
According to the firm’s latest report, this correlates to the ongoing decline in home ownership among this age group.
There has also been an increase in private renters aged 65 and above, with figures rising by 46% compared to those from 2013.
Regionally, the proportion of households privately renting is broadly similar across all the regions, except for London, where close to one in three (30%) households are opting to rent privately — nearly double the rest of England.
The report also highlighted a rapid growth in portfolio landlords, with the proportion of landlords owning five or more properties having more than tripled from 5% in 2010 to 18% in 2021.
Less than 10% of landlords are recent entrants (who have joined the market within the past three years), while just over half of existing landlords have operated in the market for 11 years or more.
In terms of housing stock, the proportion of private rented properties located in urban areas has increased from 36% to 43% in 2022.
Suburban locations account for almost half (48%) of the PRS stock at present, with rural areas accounting for the remaining 8%.
The most popular types of property in the PRS are flats and terraced homes, accounting for 40% and 35% of all rental dwellings, respectively.
While the report predicts rental demand will continue over the next few years — in turn, maintaining strong rental growth — it states that the higher borrowing costs compared to the previous decade could exert an ongoing drag on the sector, should this trend continue.
Damian Thompson, director of landlord at The Mortgage Works, commented: “Understanding the dynamics of the PRS has never been so important.
“The sector continues to support the lives of millions of people across the UK by providing homes for those who either can’t afford to buy or prefer not to own a home.
“We look forward to understanding the new government’s plans to create a stronger, fairer PRS, where legislation works for both landlords and tenants.”
