In 2023, the National Housing Federation (NHF) published a report on older people in the private rental sector. It found there were almost 867,000 households in the private rented sector where the lead resident was aged 55 or over. This figure has been rising at a rapid rate, increasing 70% since 2010/11.
Owning a buy-to-let with more mature renters can be one of the most fulfilling relationships, with older occupants tending to be more settled and sometimes more respectful. Sadly, there are times when the tenancy is called into question as even 55+ renters can run into difficulties.
The NHF report also revealed 42% of older tenants who rented privately struggle to meet the cost of either bills or essentials, or both. Additionally 48% of older private renters worry about getting into debt due to their housing and other living costs being too high.
The above report, at almost 10 months old, doesn’t take into account Labour’s plan to abolish the Winter Fuel Payment for those born before 23rd September 1958. With energy prices still running historically high, the Government’s plan could increase financial hardship for those aged over 66 and push more towards rental arrears.
A projection into the future may not fill landlords with confidence either. Research commissioned by Independent Age and conducted by the UK Collaborative Centre for Housing Evidence (CaCHE), forecast poverty levels and housing tenures for 2040 (assuming there is no reform in the private rental sector). It thinks the proportion of people over 65 living in the private rented sector will almost treble, from 4% currently to 13% and, alarmingly, half of older private renters will be in poverty.
Landlords can also find themselves at a crossroads when elderly tenants request property alterations in order to improve accessibility and mobility. It’s an issue recognised by Age UK, who says its advice line receives thousands of calls a year from older renters who are unable to get the home adaptations they need. While almost every landlord will be concerned about the wellbeing of their tenants, not many will have the financial reserves available to complete adaptive changes.
The Age UK advice line is also taking calls from older tenants struggling with poor housing or facing eviction. On the latter, elderly tenants are not immune to eviction. Landlords are quitting the sector as it becomes more difficult to sustain buy-to-lets as a viable business and, sadly, the age of the tenant doesn’t always have a bearing when it comes to regaining possession.
It’s worth noting, however, that landlords who have long-term tenants that date back decades may find it more difficult to serve notice. Crucial will be the type of tenancy that was created when the renter moved in. If they moved in before 15th January 1989, the contract may be a regulated tenancy. Others who signed a contract before 27th February 1997 may be on a fully assured tenancy, with the renter enjoying enhanced long-term tenancy rights.
Selling with elderly tenants in place is the ideal scenario when a buy-to-let is in distress. It provides security for the occupants, avoids an eviction process and reduces the strain for all those involved. Following the open market sales route does present challenges, however, as landlords are rapidly leaving lettings and not looking to buy ongoing rental concerns.
Selling a house with tenants to cash house buyers is a relevant option in today’s market. At LandlordBuyer, we would be delighted to provide you with a cash offer for a buy-to-let you own where there are older tenants in situ.
We can provide the occupants with the continuity they crave, with LandlordBuyer seamlessly taking over the tenancy. Find yourself with a regulated or fully assured tenancy? Don’t worry, LandlordBuyer makes cash offers on these types of buy-to-let as well.
If you don’t want to evict your mature tenants but do need to sell your rental property, please speak to our friendly, professional team. Contact us for free advice and a current valuation.