The difficulties experienced by those in their 20s and 30s in getting on to the property ladder have been well documented. More 18- to 24-year-olds are still living with their parents than before, and far fewer young families own their own homes now compared to two decades ago.
However, a recent ONS report reveals the trend is affecting people in middle age and shows a future scenario where those who rent now may never own their own home.
A Shift in Rental Patterns
At this moment in time, the vast majority of retirees are owner-occupiers. Typical mortgages last 25 years, and so many of them are close to owning or already own their homes outright. While the percentage of over-65s owning their own home has risen over time, the trend for those in their 30s and 40s has declined – those approaching mid-life are over three times more likely to be renting than they were two decades ago. For these growing numbers, there’s a fear that they will be paying rent into their retirement instead of living rent free in their own homes.
More Rented Accommodation
Should this future scenario become a reality, a streamlined approach to property management is essential to meet both demand and regulations. For landlords and letting agents, inventory and property inspection report software from providers like https://inventorybase.co.uk/ already takes care of every aspect of property management, offering a smooth process for both landlord and tenant by generating paperless reports and contracts on-site.
The ONS report stresses that this possible scenario is purely based on how tenure has changed over time and is not a projection. The regulations and economic climate of the future are still unknown, and retired people of tomorrow may adapt in different ways. They may still enter the property market later in their lives, borrowing into their retirement.
Whichever way the home ownership and rental sectors develop in the future, all scenarios should be prepared for. The concern over limited housing security and high rental costs will grow as retirement approaches and could lead to a greater burden on housing benefit. There’s a need for the private rental sector to ensure that homes, contracts and technological processes are provided that are suitable for older as well as younger tenants.