Money Wellness
Image of a block of apartments with a 'to let' sign outside
category iconHousing
calendar icon29 Nov 2023

Renters looking for smaller homes

Thousands more families are renting smaller homes than they were three years ago, according to a report by the BBC today, which analysed data from the property consultancy, Dataloft.

Renters aged over 30 are more likely to move to cheaper areas as the cost of renting has soared and availability has been squeezed.

Dataloft said trade-offs were needed so people could stay in budget.

As well as young, single people finding it hard to start out – families and older tenants have also been affected.

Almost half of new tenancies taken on by families earning £30,000-£70,000 in the first six months of this year were for one or two-bed homes.

In the first half of 2020, during the period covered by the first Covid lockdown, 58% of new tenancies signed by families in the same income bracket were for homes with at least three bedrooms, meaning families are downsizing.

The data also showed that renters over the age of 30 were more likely to move to a cheaper area than a higher value one when they changed home, with a quarter choosing this option.

The National Housing Federation, which represents housing associations, confirmed Dataloft’s findings, saying more older people faced insecure, expensive tenancies and their health and wellbeing were suffering as a result.

The body wants to see an increase in social housing to ease these pressures.

Rents have been increasing at more than 10% in a year for new tenants in some areas and, as a result, demand is high with the number of available homes falling due to landlords selling up.

As well as young, single people finding it hard to start out – families and older tenants have also been affected.

Avatar of Caroline Chell

Caroline Chell

Caroline has worked in financial communications for more than 10 years, writing content on subjects such as pensions, mortgages, loans and credit cards, as well as stockbroking and investment advice.

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