Tenants on the run-up to retirement age are the fastest growing group privately renting in England, according to Paragon Bank analysis.

Paragon’s analysis of government data found the that number of households headed by a person aged between 55 and 64 grew by 66% between 2014 and 2024 to 492,000.

Those aged 65+ were the second highest growth group, rising by 33% over the same period to 433,000 households.

YOUNGER DEMOGRAPHIC

Meanwhile, the number of younger households renting privately fell, with those aged between 16 and 24 falling by 16% over the past decade to 447,000, and those aged between 25 and 34 falling by 9% to 1.45 million.

The government’s English Housing Survey showed that 4.7 million households rented privately in England in the year to March 2024, representing 19% of all households in the country.

Proportionally, households with a lead tenant aged 55 or over make up one in five privately rented households in England, compared to 14% in 2014. Those aged 24 or below represent 41% of households, compared to just under half (49%) a decade previously.

“The shift in the demographics of tenants over the past decade is clear. There are more older households in the sector than ever before”

Compared to falling numbers of households renting privately among younger demographics, those buying with a mortgage aged between 16 and 24 rose by 62%, with the number of households aged between 25 and 34 buying with a mortgage increasing by 29%.

Louisa Sedgwick (pictured), Paragon Bank’s managing director of mortgages, said: “The shift in the demographics of tenants over the past decade is clear. There are more older households in the sector than ever before, with over 900,000 households led by a person aged 55 or over and the number of households aged between 55 and 64 hitting its highest-ever level.”

She added: “This has broad implications for the sector and policymakers. Older tenants are more likely to live in a rented home for a longer period, so they want security of tenure, the ability to make minor refurbishments and possibly to keep pets.

“Given the ageing demographic of the UK, we would expect this trend to continue, so landlords need to be mindful of the needs of more mature tenant groups and adapt their approach to suit their needs.”