According to a recent survey, the number of pensioners who are renting a home has reached record levels.
During the last year, pensioners have spent £3.7bn on rent, three times more than was paid in 2007. The study was conducted by Countrywide and reveals that £1 of every £14 paid by tenants is paid by someone who is retired, and accounts for a large part of the rental market. The average amount paid on rent by a pensioner is £810 a month, which is 19% higher than 10 years ago.
The research director at Countrywide, Johnny Morris, said:
“The rental market can no longer be typified by the image of carefree, young professionals. More than half of tenants are over 30 and the number of pensioners renting has reached record levels.”
Although the report didn’t come to a conclusion about why pensioners are forming a large proportion of the rental market, it did reveal that it was likely to be due to higher property prices, which makes it harder for people to get onto the property ladder. Some people may never buy a home. Higher rates of divorces are also likely to be a reason, with some individuals unable to afford to buy their own home following a divorce.
Retired people are more likely to rent somewhere smaller, as 75% would choose a one or two bedroomed apartment. Mortgage advisors gain a professional qualification through CeMAP training, so that they can help those who want to buy their own home to get a mortgage.
