The Rise of Older Renters in the UK Housing Market

The number of older individuals sharing houses has surged significantly over the past decade, reflecting a shift in the dynamics of the rental market. Data from Spareroom reveals that those aged over 45 now constitute 16 per cent of the market for renting rooms, up from 10 per cent in 2015. This increase can be attributed to various factors, including skyrocketing property prices and high rental costs.

Recent analysis indicates that the cost of renting has soared, particularly since the onset of the pandemic. Research conducted by Rightmove suggests an average increase in rents of close to 50 per cent since the first lockdown. Current figures show that renting a one-bedroom flat in the UK averages £900 per month, while the cost in London approaches £1,900 monthly.

The financial implications of these rising costs are significant. A person earning the median full-time salary of £39,000 takes home approximately £3,200 monthly. To comfortably afford the average UK room rent, estimated at £749 per month, an individual would need to earn at least £30,000. This economic reality has created barriers for younger renters, leading to a decrease in their representation within the flat-sharing market.

Data indicates that under-25s accounted for 32 per cent of flat sharers in 2015, but this figure has since declined to less than 26 per cent. Consequently, those aged 25 to 34 still constitute the largest demographic in flat shares, although their proportion has also diminished, dropping from 45 per cent a decade ago to around 42 per cent today.

The changing demographics of the rental market suggest that older individuals are increasingly choosing to share living spaces. A survey of more than 3,500 renters by Spareroom highlights that 38 per cent live in multi-generational households, where the age difference between the oldest and youngest flatmates exceeds 20 years. Nearly a quarter report an age gap of over 30 years.

The implications for younger generations are concerning, as they face rising rental prices that make it increasingly difficult to enter the housing market. Older renters, on the other hand, are often unable to save for a deposit for their own homes. This shift in household dynamics is reshaping the landscape of renting in the UK, raising questions about the future stability of the rental market.