While older people have long been the cohort of homeowners rather than home renters, an increasing percentage is now opting to rent privately.

Recent figures from lettings network Countrywide show that – across Britain – retired people now account for 8% of private tenants, compared with 5.2% in 2007. The index is based on 90,000 homes let and managed by Countrywide.

The average amount they pay has moved up to £810 a month, a rise of 0.3% from last year and a jump of 19% on the 2007 figure. This is some 12% less than the average tenant – reflecting the smaller properties they tend to rent. Some 75% of retiree renters live in a one or two bedroom home compared with 66% of all tenants.

Retirees also make up a larger proportion of tenants in those parts of the UK where rents are lowest – notably Wales and the North East. In London, just 3.5% of private tenants are retired.

The news comes as average rents continue to drift downwards. Johnny Morris, Research Director at Countrywide, said:  “Seven consecutive months of falling rents in the capital are starting to show signs of rippling out across the country with rents down in over half of regions outside London. The number of homes on the market remains well up on last year’s levels, softening rental growth.”

Is this an option you’re considering…?

No figures are available on the number of people selling their homes and moving into private rented property – an option that offers some advantages to those who prefer to free up their capital and/or to live in an area where purchasing a property would be beyond their means.

If you are considering this as an option, you can see precisely what impact it would have on your long-term finances by testing out the scenario on your RetireEasy LifePlan. The Premium version also allows you to test out and store multiple scenarios.