Increase in age of tenants

August 7th 2014
By: Jon

According to a recent lettings survey, average rents have increased over the past year as have the average age of a tenant.  Many young people have been able to get on the housing ladder by using the Help-to-Buy scheme. 

Over the last 12 months, mortgage lending to first time buyers has increased by 50%.  The average age of a home buyer using Help to Buy is 29.  These facts have led to a reduction in the younger tenants signing rental contracts.  They tend to enjoy more flexibility and sign shorter contracts. 

This year to date, 30 year olds and under, account for 42% of new tenancy agreements signed – which is down from 52% a year ago.  On the other hand, those above the age 40 account for 30% of new tenancies, which is 5% up from last year.

Government figures have shown that London’s increasing population has risen to 8.4 million from 108,000 in 2013.  Rents in the first part of 2014 grew quicker than the comparable time in 2013.  This is possibly because of a shortage in newly built homes in South East England and London.  The lettings market is still continuing to grow.