A recent study by Paragon Bank suggests the desire from tenants to own property, which includes saving for a deposit, starts to fall from the age of 35.
The study found that for the age group of people between 25 and 34, 88% of respondents said they wished to own their property in the future. 71% of these respondents said they were saving for a deposit.
For the group aged 35 to 44, this falls to 72% of tenants saying they would like to own property in the future.
When you consider the 45 to 54 age group, just 70% of respondents say they are keen to own their property.
This is something to consider for landlords, as it will likely impact on willing tenants, and how long a tenant is happy to stay in the same rental property.
The rental market is experiencing a change in demand
Richard Rowntree, managing director of mortgages at Paragon Bank, said: “Our research shows a strong desire to buy amongst younger tenants who will typically use rented property as a starter home before stepping on the property ladder. This cohort also is more able to save for a deposit, making their aim of buying a home more attainable. As tenants reach their middle-aged years, the desire to own a home becomes less pronounced, but so does the ability to save for a property. These tenants will typically stay in the private rented sector for a longer period, maybe for the rest of their lives.”
It is not as if there has only been a shift in the rental market, the property market is also evolving. Recent studies from UK Finance suggest the average age of the first-time property buyer in 2019 was 32.
This means that there will be more tenants at both ends of the age demographic. This is something landlords should be aware of, and it might influence your next decision in the rental market.
You can target which tenant you want to let to
Some landlords are not bothered as to what type of tenant they let to, as long as the rental property is filled with a rent-paying tenant. However, not all landlords are as carefree in their approach to letting property.
If you have a preferred tenant in mind, it is possible to target this market. There is a notable difference between the needs of a tenant in their early 20s and a tenant who is in their late 50s or early 60s.
The size of rental property both these tenants groups are looking for might be the same, but the style and presentation that these groups want to see are likely to be significantly different.
If you are looking to let to a particular type of tenant, please get in touch, and we will be more than happy to help. At Just Lets, we want Peterborough landlords to feel confident about the letting process, and the tenants they have in their property.
If you are a landlord in or around Peterborough, and you need assistance in managing your rental property, we can help. We know these are challenging times for landlords, but there is a demand for rental property. When you need guidance in the local market, contact Just Lets Peterborough today, and we will be happy to help you.
You can find Just Lets Peterborough at 142 Oundle Road, Peterborough, Cambridgeshire, PE2 9PJ. Feel free to email us at firstname.lastname@example.org or call us today on 01733 346255.