While Mid Somerset strikes you as an area with a high proportion of home ownership and families staying in the area for generations, the actual statistics for the area, and the country as a whole, may provide you with a different take on matters. Figures in 2016 showed that in Glastonbury, over a third of people adults were tenants, and similar patterns can be found across the area.
When you take on board the fact that Mid Somerset has a strong elderly population and figures provided by the Office of National Statistics suggest that close to 5% of OAPs reside in private rented property, there is going to be a reasonable number of Mid Somerset households occupied by OAP renters.
A lot of OAPs have never owned property
A survey undertaken by the Prudential revealed that close to 60% of OAPs who rent had never owned property. Of the remaining OAP renters, 20% sold up to clear debt, close to 10% sold their property to provide funds for retirement and the remaining group cited other factors behind their decision to rent.
While the period between the 1980s and mid 2000s saw a huge focus on owning property, this wasn’t always necessarily the case at other times. This means that many OAPs may have missed out on the property ownership boom times. By the time schemes and mortgage lenders were available to assist, these people may have already been settled into a renting lifestyle or dealing with life to an extent that they couldn’t spare the time or money to enter the property market. Now, with renting becoming a hugely important aspect of the UK market, these people have grown older and have found that they have completely missed the boat when it comes to property ownership. Even in areas like Mid Somerset, which are different from inner city areas, there are people who rent and who have always rented.
There is a significant rental market in Mid Somerset
Add in the reasons for people who previously owned property but have now decided to rent, and you have a combination of factors that mean the OAP rental market in Mid Somerset is becoming larger. This is something that will appeal to landlords and investors. It may even be that you see current property owners selling their home to reap the benefits of this action and the buyer then letting the property straight back to the seller, or someone like them.
Another factor that is relevant when discussing the older generation is that people are living longer. Somerset has long been perceived as a location with a high life expectancy and this plays a role in people’s decisions.
This behaviour will lead to debate and discussion over whether it is good for the overall market but there isn’t any reason to be immediately alarmed or concerned. Landlords should be keen to maintain the condition of their home, and the surrounding area, so there is an incentive for them to find the best type of tenant; and it may be that OAP tenants suit their needs and requirements.
For people who have lived in Mid Somerset throughout their life, or who find the pace and nature of the area appealing, it is easy to see why selling up and then renting in the area is an attractive proposition. An issue for the Mid Somerset property market has always been the lack of suitable property for buyers, and this will still be an issue that exists in the rental market, even if current homeowners sell up to downsize.
However, the issue of OAP renters is a growing one across the United Kingdom and it is something that will be relevant in Mid Somerset now and in the future.
About Tom Morgan
Founder of Jungle Property the multi award-winning letting agent based in Glastonbury, Somerset. I am passionate about property and Glastonbury and about providing the very best advice to anyone who wants the best return on a buy-to-let property investment. For an open and brutally honest opinion on anything in the Glastonbury property market please contact me via tom.morgan@jungleproperty.co.uk
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