1.3 million renters aged 55-64 by 2033
The Pensions Policy Institute projects that the number of private renters aged 55-64 in the UK will reach 1.3 million by 2033, up from roughly 700,000 today. Renters aged 65-74 are expected to more than double over the same period. These projections reflect a cohort that has rented through most of its working life and will carry that tenure into retirement.
For landlords, letting agents and property managers, this is a structural change in who occupies rented housing, how long they stay, and what they need from a property. The retirement housing market that emerges over the next decade will look different from the one that exists now.
Why older renters are becoming more common
Three forces are driving the shift.
Deposit barriers and affordability. The average first-time buyer deposit in the UK now exceeds £60,000 in many regions, according to Halifax's house price index. For households that did not buy in their 30s or 40s, catching up in their 50s is difficult. The English Housing Survey shows that the proportion of private renters aged 45-54 has grown faster than any other age band over the past decade.
Divorce and relationship breakdown. Older households that split later in life often move from owner-occupation into the private rented sector. The Office for National Statistics records that divorce rates among the over-50s have risen steadily since 2000, and this group frequently re-enters renting.
Longer working lives and pension shortfalls. The Pensions Policy Institute notes that many future pensioners will rely on the State Pension and modest defined contribution pots. The full new State Pension is £221.20 per week in 2024/25, which is below the average private rent for a one-bedroom flat in most English regions. Renting is the only option for a growing number of retirees.
What this means for tenancy length and void risk
Older renters stay put. The English Housing Survey consistently shows that private renters aged 55 and over have longer tenancies than younger cohorts, with average lengths of four to six years compared with two to three years for renters under 35.
For landlords, longer tenancies reduce void periods and turnover costs. A tenant who stays five years instead of two saves the landlord two re-letting cycles, two sets of reference checks, and two inventory and check-out processes. Over a decade, that difference is material.
The trade-off is that older tenants may need adaptations. Grab rails, level-access showers, and step-free entry become more important. Landlords who plan for these adaptations early avoid the cost of emergency modifications later.
Compliance and legal considerations
The Renters Reform Bill, when fully implemented, will abolish Section 21 no-fault evictions and move all assured shorthold tenancies to periodic tenancies. For landlords with older tenants, this changes the calculus. You cannot rely on a no-fault eviction to end a tenancy if you need to sell or move a family member in. You will need to use Section 8 grounds, which require specific reasons and, in some cases, court approval.
This makes tenant selection and property suitability more important. A tenant who can age in place is less likely to need to move, and less likely to trigger a possession claim.
EPC regulations are also relevant. The government's proposed minimum EPC C standard for rented homes by 2028 will require upgrades to many older properties. Landlords letting to pensioners should prioritise insulation, heating efficiency, and ventilation, both for compliance and because older tenants are more vulnerable to cold and damp.
HMRC's rent-a-room relief and the Renters Reform Bill's Decent Homes Standard will also affect how landlords manage older tenancies. The Decent Homes Standard, currently applied to social housing, is expected to extend to the private rented sector, with clear implications for property condition and repair obligations.
Retirement housing trends: what tenants want
Older renters are not a homogeneous group. Three broad segments are emerging.
- Active retirees in good health. They want low-maintenance flats or bungalows near amenities, with good transport links. They often downsize from larger homes and may have equity from a previous sale.
- Tenants with emerging health needs. They need step-free access, ground-floor living, and proximity to GP surgeries and pharmacies. Adaptations such as wet rooms and stairlifts become relevant.
- Tenants in later life with care needs. They may require supported housing or extra-care schemes. The private rented sector is not currently structured for this group, but demand is growing.
Letting agents and property managers who understand these segments can position properties more effectively and reduce void periods. A ground-floor flat with a level-access shower will let faster to an older tenant than a first-floor flat with a bath.
How landlords and agents should prepare
Start with the property. Audit access, bathroom facilities, heating, and safety features. A property that works for a 75-year-old is also a property that works for a family with young children or a tenant with a disability. Universal design principles reduce void risk across multiple tenant groups.
Review your tenancy agreements. With Section 21 abolition on the horizon, you need clear grounds for possession and a robust process for managing periodic tenancies. Older tenants are more likely to challenge possession claims, and courts are more sympathetic to vulnerable tenants.
Invest in inventory and condition reporting. Older tenants may stay for years, and disputes over deposit deductions become more complex over time. A detailed, timestamped inventory with photographs and condition notes protects both parties. Using property inventory software that generates AI-assisted reports can reduce the time spent on check-in and check-out and provide clearer evidence if a dispute reaches the deposit scheme.
Consider the financial profile of older tenants. Many will have stable pension income, but some will rely on benefits such as Pension Credit or Housing Benefit. Landlords should understand how these payments work and whether they cover the rent. The Local Housing Allowance rate for a one-bedroom property is £103.48 per week in most of England outside London, which is below market rent in many areas. Tenants may need to top up from other income.
What the data says about future demand
The Pensions Policy Institute's projections are based on current tenure trends and demographic data. They assume that the proportion of older households renting will continue to rise. If homeownership rates among the over-55s continue to fall, the projections may understate demand.
The English Housing Survey shows that 16% of households aged 55-64 were private renters in 2022/23, up from 11% in 2012/13. If that trend continues, the 2033 figure could exceed 1.3 million.
For letting agents, this means the tenant base is ageing. Marketing materials, property listings, and tenant communications should reflect that. A listing that emphasises proximity to a GP surgery and step-free access will attract older tenants. A listing that focuses on nightlife and commuting will not.
Practical steps for the next 12 months
- Audit your portfolio for accessibility and adaptation potential.
- Review tenancy agreements for compliance with the Renters Reform Bill and Section 8 grounds.
- Train staff on the needs of older tenants, including how to handle requests for adaptations and how to manage tenancies that may last a decade or more.
- Upgrade EPC ratings to C or above ahead of the 2028 deadline.
- Use inventory software that captures condition accurately and supports deposit dispute resolution.
- Build relationships with local authorities and housing associations that may refer older tenants.
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