Their report shows there has been a 7% decline in the number of under 25 year old tenants. Understandable given the current poor work prospects for the under 25 and rising university tuition fees. All this means stopping at home with mum and dad for longer not only makes financial sense but is a financial imperative for many young people.
Older tenants on the rise
On the other hand there appears to have been a significant increase in the number of tenants over the age of fifty with the report showing a 6% annual rise. Again, this probably is not surprising. The difficulty in obtaining mortgage finance and the continued break up of marriages means that renting privately is often the best option for older people finding themselves single after a lifetime of family living.
Our aging population (over 50% increase in over 65s expected from 2010 to 2030) will produce big opportunities I'm sure for private landlords. How we target and capitalise on this opportunity I'm not completely clear. Do we all rush out and invest in small bungalows. Do we take the McCarthy and Stone approach and invest in flats in suburban areas with good access to local facilities?
It's an interesting time for landlords who have traditionally targeted the young professional as one of their key client groups. Clearly I would say that this trend is not likely to be temporary and reverse any time soon. So should landlords be repositioning their investment portfolios to embrace our aging population? Thoughts please.
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