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There has been a surge in over 60s renters choosing the private rental sector over purchasing property to live into their later years.
Research by tenant deposit replacement scheme, Ome, looked at the cost of the average rental deposit for the growing trend of over 60s opting for the rental market over homeownership, and what this translates to as a percentage of monthly net income for all tenants based on gender and age.
With the average rental deposit currently setting tenant’s back £1,139, for the average male, this cost equates to almost half a month’s wages (47 per cent), climbing to 69 per cent for the average female.
When it comes to age, those aged between 18-21 face the toughest task with the average tenant deposit accounting for 118 per cent of the average salary. This falls to 105 per cent for male tenants, while female tenants in this age range are looking at 138 per cent of the net monthly wage to cover a deposit.
For those aged 22-29, it doesn’t get much easier, with a rental deposit costing 68 per cent of the average net salary, falling marginally to 62 per cent for males but climbing to 76 per cent for females.
The latest English Housing Survey shows that over the last decade there has been a significant increase in the number of people aged 55-64 living in the rental sector. This also coincides with a fall in the number of people owning their own home in this age group.
More and more over 60s are opting to rent, due to a more tenant-friendly approach and better facilities for the more mature tenant.
However, Ome’s research shows that over 60s will on average, be required to spend the same proportion of salary to secure a rental property as those aged 22-29. Again, this drops to 55 per cent for males in this age range and climbs to 88 per cent for females!
Those aged between 30 and 59 are slightly better off as they hit full pace career-wise, although it would still require around half of their net monthly income to stump up a rental deposit.
Co-founder of Ome, Matthew Hooker, commented: ‘There are many tenants who are financially able to opt for the traditional deposit path when renting and for many it is a more preferable route, allowing them to pay there and then without any ongoing commitment or costs.
‘That said, as our research demonstrates, it can provide a tricky obstacle and while it might not be such as issue in the long-term, it poses a cash flow problem for those required to stump up as much as a month’s wages in one hit.’