Buy To Let Updated:
When thinking of the average UK tenant, students and young people saving to get on the housing ladder would often spring to mind. However, this is changing fast with the over-30s now accounting for well over half of those renting, according to analysis from Countrywide Residential Lettings.
The research found that those aged 30 + make up 59.3% of people currently living in rented accommodation, an increase of 5.8% compared to January 2013, arguably due to those wanting to get on the property ladder struggling to save enough and being forced to rent for longer.
The number of tenants aged between 41 and 50 has been increasing, up 2.2% year-on-year to make 16.2% of the rental sector, while the number of families renting has also increased, particularly in London where there are 6% more tenants living with children than last year. Flexibility to move around, particularly in terms of career choices, could be one reason for these age groups renting.
The younger generation, however, are no longer the prime target group for the rental sector, seeing a decrease of 5.8% year-on-year. The Help to Buy scheme can be partly attributed to this decline with some now able to get onto the housing ladder, but it is also very common for this age group to be living with parents as they're unable to afford the high rents. Around 22% of those aged 20 to 34 live with parents in London.
The average monthly rent, meanwhile, has increased with the UK average standing at £859 in January – an annual increase of 2.9% – but despite this tenant arrears have fallen in all regions except Scotland.
Nick Dunning, group commercial director at Countrywide, said: "Help to Buy is having a bigger impact on the housing market in the North of England than in other regions across England, providing younger people with the opportunity to buy their first home.
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