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The government has been called upon to help buy to let investors support older tenants who are seeking greater security when renting a property.
Following a report from the Department for Work and Pensions which shows that the proportion of older people renting a property has nearly doubled in the last ten years, the Residential Landlords Association (RLA) has spoken out
Over a quarter of those in their late thirties and early forties are now renting in the private rental sector. Those within this age group with a mortgage fell from 60 per cent to under 50 per cent between 2007 and 2017, according to the Family Resources Survey, conducted y the DWP. The research also revealed that tenants are now more likely to be from a private landlord than from a council or housing association.
RLA policy director David Smith argues that with rents increasing by less than inflation and average rents lower than mortgage payments, it is unsurprising that the number of older tenants is on the rise. This is due to it becoming increasingly difficult to buy a property.
He said: ‘We recognise that older tenants, especially those with children, want security in rented housing. Although official statistics show that tenants have, on average, lived in their existing rented homes for almost four years, we have called on the Government to do more to support the provision of longer tenancies. The growth in the number of older tenants is one factor behind an increase in demand for rented housing at a time when an increasing number of landlords are not investing in more properties or are selling off homes because of Government tax rises on the sector. This is making it more difficult in areas of high demand for tenants to find decent accommodation.’
Smith also spoke out about an issue with mortgage lenders often preventing landlords from offering longer tenancies. This was demonstrated using an RLA survey that revealed that 44 per cent of landlords have mortgage conditions that limit the maximum tenancy length that can be offered.