Older renters face financial risk as soaring rents leave families financially vulnerable

Ellen O'Donoghue

A life insurance company has warned that soaring rents and an increase in older renters are leaving an increasing number of Irish households financially vulnerable in the event of an unexpected illness or life shock.

The number of renters over the age of 65 has doubled since 2011, while the number of people renting in their 40s, 50s, and early 60s has also surged.

Royal London Ireland has said that the later age profile of renters means more people are starting or already have families while renting, with many doing so without the kinds of financial protections that would be in place if they were buying a home.

The average monthly rent for a two-bedroom apartment now stands at €2,080, and €24,960 annually, with market rents now on average 67 per cent higher than their Celtic Tiger peak.

Royal London Ireland said that rents are a considerable financial burden for households, and a bill they could struggle to pay in the event of a serious illness, death, or redundancy in the family.

In 1991, the average age at which someone bought a house was 26 years old. This increased to 27 years old in 2002, 28 years old in 2006, 31 years old in 2011, 35 years old in 2016 and 36 years old in 2022.

"Unlike homeowners, renters lack built-in protections and face greater insecurity if their landlord decides to sell, increasing their vulnerability," Barry McCutcheon, protection proposition lead at Royal London Ireland, said.

“As life cover is a requirement when getting a mortgage, the families of homeowners with a mortgage are protected if the breadwinner dies. Renters may not have the same safety net, leaving their families financially exposed if the worst were to happen. Renters also have little if any security of tenure if their landlord decides to sell, and this adds to their financial vulnerability."

"While the decision to buy or rent can be a lifestyle decision as much as a financial one, many people cannot afford or source a suitable home to buy. People are now renting much later in life than was previously the case, and this has knock-on financial consequences," Mr McCutcheon said.

The company highlighted several worrying trends increasing the financial vulnerability of renters, including the fact that market rents are, on average, 33 per cent above pre-Covid levels and 67 per cent higher than their Celtic Tiger peak, and rental inflation remaining steady with Daft.ie reporting a 4.3 per cent year-on-year increase consistent with the rate of inflation since late 2023.

There was a 35 per cent increase in eviction notices issued to tenants by landlords in the third quarter of 2025, compared to the same period in 2024, with 61 per cent due to landlords selling properties. Small landlords leaving the market could push the number of eviction notices higher, Royal London Ireland warned.

The number of available rental homes has dropped to 1,901, down 21 per cent on the same time last year.

13.3 per cent of renters aged 65 and over are at risk of poverty.

The company advised renters, particularly those with children or those approaching retirement, to take steps to reduce their financial vulnerability.

Those steps could include building an emergency fund, reviewing household budgets, and ensuring adequate protection is in place in the event of unexpected illness, injury, death, or other life events.