As tenant demographics are changing, which tenants should you be targeting?

Tenants in Britain spent a staggering £62.4 billion in rent in 2019, up by £3.1 billion vs the previous year. Up some £27.9 billion since 2009 (the equivalent of an 81% increase). Almost 75% of rents in Britain are paid by people born after 1995.

Millennials (people born between 1981 and 1994)represent the largest share of tenants at some 60% share. But, as this generation are now become homeowners in their own right, generation Z (people born after 1995) are rapidly growing their share of the market. And, according to recent research, generation Z tenants are more likely than generation X to pay more for rent.

Of the remaining tenants these are the statistics:

Baby boomers (those born between 1946 and 1964) account for 8% of total rentals paid. Down 10% from 2018.

• Older people (born before 1945) account for less than 1% of tenants
• Leaving approximately 17% of rental income being paid by people born between 1965 and 1980, the so called generation X.
• Average rents grew 3.7% in 2019 with the biggest increases being in the South of England.

As a landlord, understanding the demographics of your target audience and source of potential income is vital when buying and presenting your property to let.

If you need advice about where to buy and how to stage your property, contact us today.