The UK is facing a massive shortage of homes for senior citizens, and it’s only going to get worse. That means huge opportunities for savvy investors looking to capitalise on an ageing population.

The numbers don’t lie. JLL, a global real estate firm, has just released a report showing a predicted shortfall of 46,000 seniors housing units within the next five years.

Why the shortage? Simple: we’re living longer, and the number of people over 75 is set to jump by 11% in just five years.

But here’s the catch: The UK needs more than just basic housing. We need a diverse range of options to cater to the specific needs of our growing senior population.

The Big Demand – Affordable Housing

Right now, the vast majority (72%) of seniors housing is social rent. This means low-income seniors are already struggling to find a place to live. This trend is set to continue, with demand for affordable options only increasing in the coming years.

The High-End Boom – Integrated Retirement Communities (IRCs)

On the other end of the spectrum, we have IRCs. These are fancy retirement communities offering a range of services and amenities, often with private ownership or rent options. IRCs are growing fast, accounting for nearly half of the new seniors housing built since 2019.

Here’s where the real opportunity lies: While the majority of IRCs cater to higher-income earners, the demand for market rent options within these communities is growing rapidly.

So, what does this mean for developers?

• Capitalise on the demand for both affordable and luxury housing: The key to success is offering a diverse range of options, meeting the needs of seniors at all income levels.
• Focus on IRCs: This is where the future of seniors housing is headed. Investors with a focus on the private rental market can make a real killing.
• Act fast: The shortage of seniors housing is only going to get worse. Developers who can move quickly and offer innovative solutions will be in high demand.