A new article in Property Reporter looks at the prospects in the Retirement Living market –
- The Growing Need: There is an increasing number of people aged 65+ in the UK, especially in London. This group will grow by 30% in the next decade, creating a high demand for specialised housing.
- Supply Gap: London’s supply of senior housing units is just 65,000, with 79% of them being affordable housing. This leaves a big gap between the number of houses available and the number of older people needing them.
- Historical Neglect Leads to Opportunity: Historically, planning for older people’s housing has been overlooked, resulting in a current shortfall. However, this gap creates speculative opportunities, making the sector attractive for developers and investors.
- Lack of Investment and Policy Support: Both private and public sectors have inadequately invested in retirement living. Government guidance recognises the ‘critical’ need, but there is no centralised policy driving investment in this area.
- Stable Asset and Resilient Development: With the ageing population, the demand for retirement housing will continue to rise, making it a resilient and stable asset for investors.
- Easier Planning Permission: Retirement housing can often be built in areas where traditional housing can’t, due to more flexible planning permissions. This can open new opportunities for development in otherwise restricted areas.
- Multiple Benefits: Suitable housing for older people offers numerous benefits, not only for the seniors themselves but also for their families. It can free up larger homes and improve the overall housing market.
- Under-Occupation: Many older people live in homes with spare bedrooms. 55% of households led by a 65+ person had at least two spare bedrooms. This could be addressed with appropriate downsizing options.
- Barriers and Solutions: There are barriers to downsizing, primarily the lack of suitable properties. Experts suggest incentives like a stamp duty exemption for ‘last time’ buyers and a joined-up approach between housing and health departments to encourage downsizing.
- Urban Appeal: Many seniors prefer to live near city centres with good access to amenities, transport, and leisure facilities. There are many retirement schemes that offer these benefits, adding vitality to city areas.
- Overall Attractiveness: The retirement living sector is becoming more appealing for a variety of reasons. It’s seen as socially responsible, resilient, and less restrictive, making it an exciting investment opportunity.
Conclusion
Investing in the retirement living sector appears to be an attractive and promising opportunity. The growing ageing population in the UK, coupled with a shortage of suitable housing, presents a unique chance for investors, developers, and funders. By recognising and overcoming the barriers to development in this sector, investment in retirement living could yield substantial benefits for all stakeholders involved, from seniors themselves to the wider community and investors.