Big Rise In Middle Age Tenant Numbers

There has been a big rise in the number of middle age tenants renting a home in the UK, a survey has revealed.

Intus Lettings has found that many middle-aged workers cannot afford to buy their first home or have become 'accidental renters' after the breakdown of a relationship.

The firm says that the number of people aged between 35 and 54 who are renting has risen by 15% over the last three years.

They also found that the numbers of those renting aged between 45 and 54 say they are doing so because they cannot afford a house deposit and their numbers have rocketed by a third since 2016.

'Never be able to afford to buy their own property'

The survey also reveals that for renters aged over 55, around a fifth say they will never be able to afford to buy their own property.

In this age group, they say there are problems getting a mortgage because of their age and the affordability of property.

The firm's lettings manager, Hope McKendrick, said: "With rent costs rising faster than wages, there's no surprise there's an increasing number of people who are unable to save for a deposit for buying a home well into their 40s and 50s and beyond.

"The survey reveals that a large proportion of these tenants do not believe, however, they will ever buy a home and it's a particularly worrying trend as one in five tenants in middle age believe that renting does not suit their lifestyle."

She added that since around half of the tenants aged between 35 and 54 are living with their children, she says these pressures can bring added stress for families and parents.

Cost of buy to let mortgages fall

Meanwhile, it's been revealed that the cost of a fixed-rate buy to let mortgage has fallen year-on-year.

A mortgage tracker compiled by Property Master reveals that mortgage lenders have reduced the costs for many fixed-rate buy to let deals.

They say that a range of BTL mortgages offering interest-only loans of £150,000 have seen average rates fall for two, three and five-year fixed deals and, using an algorithm to calculate this effect, the firm says that the cost of most fixed-rate BTL mortgages has dropped over the past year, some by as much as £348.

The firm's chief executive, Angus Stewart, said: "The Bank of England has given a signal that interest rates must rise and with the current low rates we suggest that a landlord should be giving serious consideration to remortgaging."