Rising Demand Among Older Renters

The UK rental market is evolving, and one of the most significant emerging trends is the rapid growth of older renters. People aged 55 and over are increasingly renting long-term accommodation, seeking stability, accessibility, and convenience. For property investors, this demographic represents a structural, under-served segment with strong potential for reliable rental income and portfolio resilience.

Rising Demand Among Older Renters

The private rented sector is experiencing a clear demographic shift:

• Nearly 867,000 households headed by someone aged 55 or over currently live in the private rented sector.

• The number of 55+ households renting privately has grown by approximately 70% since 2010/11, significantly outpacing overall household growth in this age group.

• Older renters now comprise around 20% of all privately rented households in England, up from 14% a decade ago.

• Between 2014 and 2024, households aged 55–64 renting privately rose by 66%, while those aged 65+ grew by 33%.

• Projections suggest that by 2035, households aged 45 and over will account for at least half of all privately renting households, highlighting a long-term structural shift.

These figures indicate strong, long-term demand in the rental market, making older renters a key demographic for investors to consider.

Why Investors Should Pay Attention

The growth of older renters presents multiple advantages for property investment strategies:

1. Long-Term, Stable Tenancy
Older tenants prioritise stability over frequent moves, reducing turnover and associated costs. Properties catering to this segment can provide consistent, long-term rental income.

2. Demand for Age-Appropriate Housing
Accessible layouts, ground-floor flats, and proximity to transport and amenities are highly sought after. Properties designed with these features can command premium rents and attract reliable, long-term tenants.

3. Resilient Market Segment
Older renters are a growing, under-served market. Their preference for stable, accessible housing makes them less vulnerable to short-term market fluctuations, creating resilience for rental portfolios.

4. Supply Gaps Highlight Investment Potential
Research indicates that the number of privately rented bungalows fell nearly 5% year-on-year, demonstrating a clear mismatch between demand and supply. Investors can target these gaps with accessible, age-friendly properties, increasing both rental demand and tenant satisfaction.

5. Market Scale and Structural Growth
The private rented sector houses approximately 4.6 million households, or roughly 19% of all households in England. Older renters now represent a growing share of this market, underlining the long-term viability and resilience of this tenant segment.

Key Investor Takeaways

• Older renters are one of the fastest-growing tenant segments, with 55+ households in the private rented sector growing 70% since 2010/11.

• Age-appropriate, accessible rental properties can deliver stable yields, lower vacancy risk, and reliable long-term income.

• Urban centres and commuter hubs are hotspots for older renter demand, offering strategic opportunities for investors.

• Affordable, well-designed properties for older renters meet both structural demand and income stability, supporting portfolio resilience.

• Supply gaps, such as the decline in accessible housing like bungalows, create targeted investment opportunities in high-demand segments.

Conclusion

The rise of older renters represents a positive, structural trend in the UK rental market. By focusing on accessible, stable, and long-term rental accommodation, investors can capitalise on an under-served demographic, achieving reliable rental income and long-term capital growth.

Older renters are not just a growing demographic — they are a strategic opportunity for UK property investors looking to align their portfolios with long-term trends in the UK rental market and secure resilient returns.