Call me back
call-to-action

The rise of retired renters

Thu 06 Jul 2017

Retired renters are spending record sums on rent as well as becoming a larger part of the rental market as pensioners now foot the bill for every £1 in £14 of rental income. 

Some claim that retirement renting is a time bomb which will stretch the finances of the elderly and cost taxpayers billions in housing benefit and care. The view raised concern amongst charities who warned this could leave older tenants vulnerable to poverty, poor living conditions and eviction. 

Retired tenants, however, paid a total of £3.7 billion in rent during the last 12 months and now account for 8% of all private tenants, up from 5.2% ten years ago, with this figure expected to rise. Some argue that that these baby boomers shouldn’t be overlooked in favour of millennials, who have considerably less spending power.

We decided to do a little homework on the subject to find out who these silver renters are, why their numbers have increased 200% in the last decade, what kind of property they are looking to rent and where their money is coming from, so you can make up your own mind about whether you should be renting to more of them.

Who are the silver renters?

A spending shift has seen the over 50s spending more on household goods and services, rent, recreation, culture, cars and alcohol. In 2015 they overtook younger households for the first time and are now worth an estimated £473 billion a year to the economy. 

Why have their numbers increased?

Because people are living longer than ever before, due mainly to improved healthcare, the elderly population is growing and more than half of those in rental accommodation  are themselves former property owners. 

What kind of property are older tenants looking for?

The average rent for older renters is £810 per month, which is up on last year, but they still pay 12% less than other tenants, due to them renting smaller properties. 

If you want to attract older tenants, or decide to purchase another property with them in mind, then here are a few of the things they might be looking for in a rental property:-

•Safe and secure neighbourhood

•Low maintenance properties with smaller gardens

•Bungalow or ground floor apartments

•Close to amenities such as shops, restaurants, health centres, train stations and bus routes; ideally within walking distance

•Well maintained properties with adequate heating

•Security of tenure (i.e. assured tenancy)

•Permission to have a pet (in the case of those who live alone, some choose to  keep a pet as a companion) 

Where is the money coming from?

Whilst some older renters are forced to move into rental accommodation due to debt and may even have to claim benefits - others have been protected by the Government’s ‘triple lock’ state pension guarantee, which have helped push up their benefit receipts by 15% in the past five years. Income from occupational pensions has also rocketed. 

When the default retirement age ended in 2011, increasing numbers of over 65s stayed in work, boosting their finances even further. 

Retired renters are more likely to be long term tenants

Many of those living on private pensions are likely to have sufficient income to be able to afford to rent long-term and are more likely to settle into the same property for longer without having to move due to work commitments or school placements. 

Legislation for the elderly

Whilst you will no doubt appreciate the stability and assurances often provided by elderly tenants, extra consideration should be given to the legislation surrounding them.

Under the 2005 Disabilities Discrimination Act landlords have an obligation to make ‘reasonable adjustments’ to their property when renting to the elderly, but you are not required to alter the physical features of the property, so would not be expected to install a stair lift or undertake large-scale changes. 

Landlords who benefit from our fully managed service would of course be expertly guided through any of these processes and advised on the best course of action.

Our verdict

We keep up to date with changes to housing legislation and industry news so that you can benefit from our extensive knowledge of the private rental sector. We also aim to share property trends and industry insights that we think might interest you. Whatever decisions you make as a landlord, we will continue to adapt and make any changes that are needed to secure your business investment, and look to increase its value. 

If you’d like to discuss the prospect of renting to more retired people, are concerned about rent arrears or want to pick our brains over anything else, please call us on 01480 218200

"Lovett Sales and Lettings sold a property for me recently. Their fee was very good value for money. All communications and queries were solved quickly and efficiently. Standard of Service overall good"
Pat – St Neots

News Archive

October 2017

'It was like a pig sty'

Are Landlords unprepared for the ban?

They came and ate cake!

Landlord open evening, October 2017: Open to all

September 2017

Interest rates remain the same – but a future increase is coming

Average rents surge to a new high for 2017

I’m not Willy Wonka and Lovett’s isn’t a chocolate factory

Guest blog: How to identify smoke damage in your rental property

One thing you shouldn’t do when the price isn’t right

August 2017

The Great Outdoors has a big impact on a property’s value

Beat the Back to School Rush

What's happening with House Prices in St Neots?

Life onboard a dragonboat

Resolving Deposit Disputes With Tenants

July 2017

Guest Blog: Can Mortgage Holders Withstand Rises in Interest Rates?

Ask The Expert: 'I am currently in a fixed rate mortgage, is it worth swapping mortgage deals as the rates are much lower?"

We're proud to be sponsoring the St Neots Community Awards 2017

Landlords and tenants in the St Neots area: How will the upcoming ban on tenant fees affect you?

The rise of retired renters

June 2017

Queen confirms tenant fees ban

UK rents fall for the first time in 8 years

Property Market Update, June - In Numbers

Guest Blog: Buy-to-let market hit by new reforms

The Election and the Private Rented Sector: In brief

May 2017

Looking after your money

Guest Blog: Bank of Mum and Dad Gets into the Top Ten UK Mortgage Lenders

Corporate golf day raises thousands for local charity

April 2017

Property Market Update – April 2017

Record Low Rate Launched on New Mortgage Product

Lovett's Support Dragon Boat Juniors

UK Lettings market starts to cool - but Cambridgeshire remains strong!

In Brief: 60 Seconds With.......Katie Williams, St Neots Town Centre Manager

Lovett partners with St Neots' first dedicated FM radio station

Top 5: Local Easter Egg Hunts This Weekend!

March 2017

Letting agents celebrate new protection for landlords and tenants

Guest Blog: Are you a buy-to-let mortgage prisoner?

When is the best time to sell your property?

Imminent changes to tax relief for residential landlords: In Brief

Landlords: Prepare early for EPC regulations changes

February 2017

Buy To Let Mortgages Hit Record Low

Home Repossessions Down in 2016 – But Will the Downward Trend Continue?

House Prices Surge In East of England

Government Announces New Housing White Paper

January 2017

Online Vs Traditional – The Battle Continues

2017: Property market predictions and trends

We smash our 2016 MacMillan Business Champions fundraising target

Keeping it in the family: Lovett MD passes on baton to his son

December 2016

Our Christmas Opening Hours and Emergency Contact

Rents rocket across East Anglia as it closes gap on London

The Sales Property Market in PE19, 2015-16

Forecasting the Property Market: The Next 5 Years...

Autumn Statement - Chancellor Focuses On Housing

November 2016

Proposed Ban Of Tenant Letting Fees

October 2016

Lettings Market Update - November 2016

Sales Market Update - November 2016

Looking For An Investment Property?

Lovett's In The Community

Property Market Update – October 2016

Lovett Ringing The Changes!

Coffee Morning Is A Piece Of Cake!

September 2016

Download our free guide to selling your home in Cambs

Back to School - How Catchment Areas Shape Our Buying and Selling Habits

Property Sales Market Update – September 2016

New Government Landlord Tax Changes: In Summary

August 2016

Lovett At The Dragonboat Festival

August Property Market Update - Nationally and Locally

First Time Buyers Paying A Higher Price?

Our Charity Cycle Ride Raises Thousands For Local Charity

June 2016

**COMPETITION TIME**

July Property Market Update – Post Brexit

David’s Top 5 Tips……Preparing Your Home For Viewings!

Lovett's at Lettings Agent of the Year Awards

May 2016

May Property Market Update

Fancy New-Build Waterside Living From Just £159,995?

Our Rent Pledge Proving a Firm Favourite

Lovett’s Use Pedal Power for Woodlands Fundraiser

BREXIT: What now for the property market?

March 2016

Let Them Eat Cake!

February 2016

Right to Rent Legislation - We've Got It Covered

January 2016

West Cambs Set For Further Capital Growth

December 2015

Chancellor Announces Stamp Duty Hike for Property Investors

November 2015

Buy-to-Let Landlords Evening

October 2015

Bank of England To Curb Buy-To-Let Lending?

Recognition for 30+ Years As Local Property Experts

Dragonboat Success for Lovett Crew!

August 2015

Our Top 5 Local Spots for Summertime Drinks!

Advice For Concerned Kirby Landlords/Tenants

July 2015

Local Lettings Market Goes From Strength to Strength

June 2015

We Partner with Auction House

Professional Lettings Agents unite for SAFEagent Awareness Week 2015

May 2015

OnTheMarket.com announces 10million visits in 3 months

April 2015

The Sales Process

St Neots RUFC Festival of Rugby, 24th - 26th April

NEWS: Stamp Duty Overview

BLOG POST: The First 40 Years Are The Hardest.......

Welcome To Our Brand New Website!