Recent statistics reveal a rising trend: over 486,000 UK households headed by individuals aged 65 and over now rent privately. A decade ago, this number was just 267,000. This 52.8% increase signals a shift in retirement living, and Lancaster is no exception.
For landlords, this trend presents a unique opportunity. With 31.9% of Lancaster’s population aged 65 or older, it’s worth exploring why retirees are increasingly opting for rental properties and how landlords can meet their needs.
Why Are More Retirees Choosing to Rent?
Older adults in Lancaster are turning to rentals for several reasons:
- Financial Freedom: Many retirees are selling their homes to access the equity tied up in them. This helps fund retirement, assist family members, or invest for better returns.
- Predictability: Renting offers a fixed monthly expense, often including maintenance services, providing financial stability.
- Flexibility: Renting allows retirees to relocate more easily if their circumstances change, such as moving closer to family or into care facilities.
- Convenience: Downsizing to a rental eliminates the upkeep of larger properties and unexpected repair costs.
A survey by Prudential found that nearly 60% of older renters have always rented, while others transition due to debt, personal choice, or lifestyle changes.
The Lancaster Rental Market for Over-65s
In Lancaster, 76.2% of those aged 65+ own their homes outright, while 8.5%—around 1,617 households—rent privately. This figure is small but growing, as more retirees downsize to rented homes for simplicity and flexibility.
Older renters often prefer low-maintenance properties near essential amenities such as GP surgeries, shops, and bus routes. Semi-detached bungalows, with accessibility and practical layouts, are particularly sought after.
Opportunities for Landlords
Catering to this demographic can offer significant benefits to landlords:
- Long-Term Stability: Retirees value security and will likely remain reliable tenants for extended periods.
- Premium Rents: Older tenants are often willing to pay more for homes that meet their specific needs, such as accessibility features or included maintenance services.
- High Demand: The Centre for Economics and Business Research (CEBR) predicts the number of retirees renting privately will double in the next decade, further increasing demand for suitable rental properties.
Meeting the Needs of Retirees
Landlords who adapt to this growing market can enjoy steady returns while supporting Lancaster’s ageing community. Providing thoughtfully designed, low-maintenance homes near amenities will appeal to older tenants and ensure high occupancy rates.
Beyond profitability, this trend highlights the importance of social responsibility in the private rental sector. By aligning investment strategies with the needs of this demographic, landlords can contribute to sustainable housing solutions for Lancaster’s ageing population.
If you’re considering expanding your rental portfolio, now is the perfect time to explore opportunities in this evolving market.
If you would like to chat about this, or the Lancaster rental market in general, please get in touch.
At JDG we are here to help
Thanks for reading
Josh
