Buy-to-let investors and landlords in the UK now have a new segment of customers – renters, who are aged 60+ years. The number of such tenants in the private rented sector is expected to grow significantly in the next few years, fuelling demand for rental property.
According to data from Centre for Ageing Better, the number of 60+ years in the UK increased from 254,000 in 2007 to 414,000 in 2018. Simple Landlords Insurance is of the view that this rising trend is set to continue, with a third of people aged over 60 expected to be living in private rented accommodation by 2040.
“Shrewd landlords are increasingly turning to the attractive investment potential of purpose-built accommodation specifically designed for older tenants,” Simple Landlord Insurance, said in its latest report.
Quoting Girlings Retirement Rentals, the report said there was a rise in the number of people wanting to step off the housing ladder and rent in retirement because of several benefits it offered. Many schemes now include buy-to-let homes meant for retirement rentals.
Rental accommodation for people in the age group of 60+ years is a niche market in the UK but holds promise for landlords and investors in the UK residential property market.
Renting can make financial sense too, allowing people to use the capital from a home sale to invest, gift or spend