An ageing tenant population: challenges and opportunities for landlords

 

  •  3 minutes

3 minutes

The private rental sector in the UK is witnessing a significant demographic shift. As revealed in The Mortgage Works Buy to Let Report – Summer 2024, one of the most dramatic changes over the past decade has been the 80% increase in households privately renting among those aged 55-64.

This trend presents unique challenges and opportunities for landlords, necessitating a strategic adaptation to meet the needs of an ageing renter population.

The Office for National Statistics (opens in a new window) projects over the next 15 years the size of the UK population aged 85 years and over is set to increase from 1.6 million (2.5% of the total population) to 2.6 million (3.5%). By considering adaptations now, you could be opening your doors to older tenants and those with additional needs, who are seeking long-term homes.

Understanding the demographic shift

The rising number of older renters can be attributed to several factors:

  1. Economic changes

    Many older adults are finding it increasingly difficult to afford homeownership due to rising property prices and stagnant wages. Additionally, some may have sold their homes to release equity for retirement, choosing to rent instead.

  2. Longevity

    As people live longer, the demand for flexible housing solutions that can adapt to changing health and mobility needs increases.

  3. Lifestyle preferences

    Some older individuals prefer the convenience and reduced responsibilities that come with renting, such as maintenance and repairs handled by landlords.

The challenges of an ageing tenant population

  1. Accessibility and safety

    Older tenants may require properties with fewer stairs, wider doorways, and adapted bathrooms to accommodate mobility aids and reduce the risk of falls. For more information on how you can adjust your properties, read our article on how to make adaptations for elderly and disabled tenants.

  2. Longer tenancies

    Older renters are likely to stay longer in their homes, leading to less frequent turnover, but requiring properties that can adapt over time to their changing needs.

  3. Health and social care needs

    As tenants age, their need for support services may increase, with a need to be within close distance of healthcare facilities and reliable social care networks.

Adapting housing stock to meet older renters' needs

To effectively cater to the ageing tenant population, landlords need to consider several key changes to their properties:

  1. Property modifications

    Installing grab rails, walk-in showers, and stairlifts can make homes more accessible. Ensuring that properties have good lighting and non-slip flooring can also enhance safety.

  2. Flexible design

    Consider properties that can be easily modified as tenants’ needs change. Open-plan layouts can be advantageous, offering adaptability for future modifications.

  3. Proximity to amenities

    Properties located near public transportation, shops, healthcare services, and community centres are highly attractive to older renters.

Strategies for landlords

  1. Invest in adaptations

    By making necessary adaptations to properties, you can attract and retain older tenants. These investments can lead to longer tenancies and reduced vacancy rates.

  2. Understand legal requirements

    Stay informed about legal obligations related to renting to older tenants, such as accessibility standards and anti-discrimination laws (opens in a new window). Tenants with disabilities have a right to request changes that will help them. The Equality Act 2010 (opens in a new window) calls these changes 'reasonable adjustments'.

  3. Enhanced communication

    Good communication with all tenants is a given, but maintaining open lines of communication with older tenants is crucial. Understanding their specific needs and concerns can help you provide a more tailored and satisfactory rental experience.

  4. Getting to know support services

    Working with or even being familiar with healthcare providers, social services, and community organisations can provide tenants with the necessary information and support to help enhance their quality of life.

  5. Market awareness

    Stay abreast of market trends and demographic changes. Understanding the growing demand for age-friendly rental properties can guide investment decisions and property management strategies. Stay up to date with our dedicated news and insights section, which provides a range of relevant and timely landlord information and insight, as well as simplifying complex regulation.

The increase in older renters presents both challenges and opportunities for UK landlords. By understanding the needs of this demographic and adapting properties accordingly, landlords can not only meet the demand but also foster long-term tenancies and secure stable rental income. As the rental market continues to evolve, those who proactively adjust their approach to accommodate an ageing population will be well-positioned for success in the years to come.