Retirement housing lacking in the UK

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PETALING JAYA (Nov 4): The stock of private retirement housing accounts for just 0.6% of dwellings in the United Kingdom, according to Knight Frank LLP’s “Retirement Housing Update: October 2016” residential research analysis.

The international real estate firm stated that while much attention has been paid to the housing shortage for first-time buyers trying to climb onto the property ladder, there is a less headline-grabbing trend which is just as notable in the market – the shortage of homes specifically for older people.

Citing data from the Elderly Accommodation Counsel (EAC), Knight Frank pointed out that there are currently around 715,000 homes loosely classed as ‘retirement housing’, ranging from age-restricted developments to close care housing.

“This accounts for around 2.6% of the total housing stock, and is dominated larger by older stock in the affordable housing sector.

“The delivery of new units in 2016 is projected to be around 5,500, accounting for around 3% of the estimated total housing delivery,” stated Knight Frank in the report.

While the retirement housing market may seem specialised, creating homes for older people has wider implications for an interconnected market, it said.

“Not only does it help address the very real demand among those in this age cohort, but building enough of this type of housing can serve to loosen the constraints in the rest of the housing market, as most family houses become available, allowing more people to move up and down the housing ladder,” said Knight Frank’s head of institutional consultancy Emma Cleugh.

“There is a significant appetite in the market to develop and invest in the retirement housing sector and provide specialist and aspirational housing that the older generation now demands,” she added.

In comparison, some 7.8 million people or 18% of the UK population is aged over 65, with 12% of the population aged 70 and over.

“Not all older people will choose to move from their existing homes as they age – indeed many will stay, unaided or with care. But a significant proportion of older people would like to move into purpose-built accommodations.

“Research conducted by Knight Frank showed that 25% of over-55s would consider moving into purpose-built retirement housing in the future, a potential pool of demand of nearly two million homeowners,” said the real estate consultancy.

Knight Frank also noted that in order to enhance the delivery of future supply of retirement housing, the support of local authorities through the planning system will be needed.

It called for local authorities not only to consider housing needs when drawing up local plans, but also the type of housing need, taking age into account.