Why More Over-55s Are Renting in the UK: A Real Estate Trend Investors Can’t Ignore

Marketing Team
Dec 10, 2024 • 2 min read
https://henley-capital.webflow.io/why-more-over-55s-are-renting-in-the-uk-a-real-estate-trend-investors-cant-ignore

introduction

New research from Paragon Bank highlights a major shift in the UK rental market, with over-55s becoming the fastest-growing tenant demographic. Between 2014 and 2024, households led by individuals aged 55-64 increased by an incredible 66%, totalling 492,000. For those aged 65 and over, the figure grew by 33%, reaching 433,000.In contrast, younger renters are declining in numbers. Households headed by 16–24-year-olds fell by 16%, and those aged 25–34 dropped by 9%.

Investment opportunities

Why This Matters to UAE-Based Investors

With 19% of all households in England renting privately, older tenants now represent a significant segment of the market. Today, one in five privately rented homes in England is led by someone aged 55 or older—a sharp increase from 14% just a decade ago.

This trend is particularly relevant for UAE investors seeking stable, long-term returns in the UK real estate market. Older tenants tend to stay longer, require secure housing, and value flexibility, such as being able to make small modifications or keep pets.

Catering to the Needs of Mature Renters

The UK’s ageing population means this trend is set to continue, offering lucrative opportunities for investors. By targeting rental properties that appeal to older tenants—such as well-maintained homes in quieter areas—UAE-based investors can benefit from steady rental income and reduced turnover.

Louisa Sedgwick, Paragon Bank’s Managing Director of Mortgages, states:
“This shift has broad implications for landlords. Older renters are more likely to stay longer and expect a level of security and adaptability. Investors who cater to these needs can ensure a strong position in the market.”

conclusion

With this emerging trend, UAE investors have an excellent opportunity to expand their portfolios in the UK. Whether you’re a seasoned investor or just starting, our team can guide you in selecting properties that deliver steady returns. Visit our website to learn more and start your UK real estate investment journey today!‍