High house prices, a growing proportion of urban flats as new build properties and increasing difficulty in obtaining a mortgage have combined to fuel a rapid expansion in renting, according to research by Experian.
The research found that older groups of society are emerging as renters and are taking up affordable properties from the younger generation. This in turn causes a knock on effect as young adults are forced to rent affordably in suburbs previously dominated almost exclusively by families.
The rise of the middle-aged renters
Experian has identified a new group of people, termed Midlife Stopgap, who are increasingly part of this trend - maturing singles in employment, who are renting short-term affordable homes, possibly due to the dissolution of relationships or making a new start after a career move. After students, this group has become the most likely in the UK population to rent their homes. Their characteristics include:
- Aged between 35 and 55, renting small, affordable homes - two- or three-bedroom Victorian or Edwardian terraced properties - often shared with other adults.
- Typically in full-time employment with an average income of £20k - £29k
- Very diverse group in terms of roles, levels of responsibility and education
Top 10 towns for Midlife Stopgap
- Torquay
- Portsmouth-Central
- Crawley
- Penzance
- Chatham
- Newton Abbot
- Milton Keynes
- Thurrock - Essex
- Birmingham - Erdington
- Weymouth
Young singles in family neighbourhoods
In London, Land Registry data says that house prices have grown by 36% in the last five years against only a 9% rise in England and Wales for the same period. This has created a polarisation of the capital and several groups of people who can no longer afford to buy have switched to renting or moved elsewhere. This group is longer seeking to rent in city centres but are instead moving out to pleasant suburbs to find affordable, quality housing.
Key features of this group include:
- 18-25 year old young singles, just starting off their careers, choosing to live in good value semi-detached and terraced properties outside of centres.
- In contrast to many other young people, they do not live in shared houses or flats but instead live on their own, or occasionally with a partner.
- They earn starter salaries (£15k - £19k) working in administrative and intermediate roles that give them a level of financial security and a standard of living that most are content with for now.
Top 10 towns for Flying Solo
- Hatfield
- Bournemoth - Central
- Uxbridge
- Staines
- Dartford
- Cambridge West, Cambridge
- Oxford
- Loughborough
- Guildford
- Bury St. Edmunds