‘Traditional’ Retirement Housing Increases In Value On Resale

New research into ‘traditional’ leasehold retirement housing shows that recently built properties, on average, increase their value on resale. Drawing on available Land Registry data, matched to its own database of retirement developments, Elderly Accommodation Counsel (EAC) has begun to shed light on a topic that has raised questions from prospective purchasers for many years. “This report shows that recently built traditional ‘sheltered’ properties have, on average, improved their values upon resale,” said Adam Hillier, the report’s author and EAC deputy chief executive. Read more on 24housing.

https://www.24housing.co.uk/news/traditional-retirement-housing-increases-in-value-on-resale/

Why Retirement Living Needs More Innovative Investment

An ageing population is causing a serious supply and demand deficit in UK retirement housing. But investors need better access to the sector. The proportion of over-65s is set to rise to 20.7 percent of the UK population by 2027, up from 18.2 percent in 2017, according to the UK government. At the same time, ARCO, the housing with care industry body, has set a target of 250,000 over 65s living in housing with care facilities by 2030. Based on this growth target, over 11,000 housing with care units would need to be built each year to meet demand up to 2026 – but over the last decade an average of only 3,220 units a year have been built, according to data from JLL. Read more on The Investor website.

https://www.theinvestor.jll/news/uk/alternatives/why-retirement-living-investment-needs-to-get-more-innovative/

Land Costs Holding Back Development Of Retirement Communities

Access and cost of land was the single largest barrier to dedicated retirement communities being developed. Winckworth Sherwood in a survey of 300 housing, health and social care professions asked: what holds back the retirement living market and why the UK has not yet seen the rise of dedicated retirement communities? 28% of respondents told the firm the availability and costs of land are the single largest barrier, followed by a lack of funding (22%). A further 13% blame the cost of development and construction, with 9% saying the planning regime in England. 36% said that large scale retirement villages are still a decade away, with 40% believing we will have to wait at least 20 years. Read more on 24housing.

https://www.24housing.co.uk/news/land-costs-holding-back-development-of-retirement-communities/

£1 Billion Housing Delivery Fund Launched

Housing Secretary James Brokenshire has announced a partnership with Barclays Bank to provide £1 billion of loan finance to help support small and medium sized developers, speeding up the delivery of thousands of new homes. Support, ranging between £5 million to £100 million, will be available to developers who are able to demonstrate experience and commitment to building excellent new homes, with a track record of delivering challenging projects on time and to target. The Housing Delivery Fund will support the delivery of new homes, including social housing, retirement living and apartments for rent, whilst also encouraging greater innovation on how housing is delivered such as brownfield land and urban regeneration projects. Read more on the Homes England website.

https://www.gov.uk/government/news/1-billion-housing-delivery-fund-launched-by-brokenshire-in-partnership-with-barclays

Retirement Housing Faces ‘Imminent Crisis’

Current stock levels of retirement housing and projected demographic changes highlight a critical undersupply of age-appropriate homes. In a new report, Knight Frank assesses the undersupply as an “imminent crisis”. There are currently 11.8 million people in the UK over the age of 65, which is forecast to rise by 20% over the next decade. This means that the time spent in ‘retirement’ will also lengthen, underpinning the crucial need for retirement housing. Knight Frank identifies the gap between the potential pool of demand and current supply as stark. Present stock – from age-restricted over-55s housing to housing with care – comprises 725,000 homes, which equates to just 2.6% of the total housing stock in the UK. Read more on 24housing.

http://www.24housing.co.uk/news/retirement-housing-faces-imminent-crisis/

Not Enough Being Done To Build Homes For Older People

Taxes on the development of new homes in the UK are scuppering retirement housing development, which has enormous social value and helps free up housing for young buyers and growing families, new research suggests. The analysis from think tank Demos says there is evidence of a looming crisis in the supply of housing for older people, as current policy favours developers building starter properties, rather than also supporting older people to downsize which would spark a positive chain reaction in the housing market. Demos found widespread support for policies to help them downsize, including stamp duty exemption, practical help with moving and opportunities to try before you buy. Read more on Property Wire.

Study Shows Social Benefit Of Housing Investment

Research carried out by Housing Plus Group has revealed that local communities benefit by up to £11 for every £1 invested in affordable housing and retirement living accommodation. The group has placed a value on the social return on investment for some of its major development projects, taking into account factors such as increased support for village schools and shops as well as reduced pressure on overstretched health services. Some of the most significant social return on investment was recorded in areas around new Extra Care communities. Read more on the Housing Plus website.

New £200m Firm To Build 'Downsizing' Dwellings For The Over-55s

Healthcare company Octopus and property development specialist Places for People have launched a new £200m retirement housing business which aims to build more than 2,700 homes in the next five years. The new company, called Liberty Retirement Living, will provide homes for people over 55 looking to downsize, and already has five retirement villages in the pipeline. The venture hopes to capitalise on the under-supply of purpose-built homes for older people, which currently makes up just 2pc of the UK’s housing stock, compared to 17pc of stock in the US. According to research from property consultancy Knight Frank, around 25pc of over-55s want to move into some sort of retirement housing in the future -  around 2.5 million households. Read more on the Telegraph website.

'More Older People's Housing Could Save Taxpayer £14bn'

The taxpayer could save £14.5bn over 50 years if just one couple among every 50 older homeowners downsizes into specialist retirement housing. That is the finding of a report by older people’s specialist housing association Anchor and Strategic Society Centre. The report, entitled Valuing Retirement Housing, uses a wide range of datasets to provide estimates of savings retirement housing can generate for local and central government. It estimates one extra person moving into specialised retirement housing could save £9,700 over 10 years due to fewer falls, reduced home and residential care. A couple moving into retirement housing could save the taxpayer £54,800 due to freeing up a home for first-time buyers, creating more retirement wealth for them and less reliance on housing benefit. Read more on Inside Housing.

Demand For Retirement Homes In UK Slows

The uptake of retirement housing in the UK softened in the second quarter of this year as many downsizers paused plans ahead of the European Union referendum vote, according to the latest quarterly review. Overall new buyer registrations for retirement properties slipped by over 20% from the first quarter to 4,744, a 30% fall on the same period last year, as uncertainty before the referendum slowed the market. However, the data from retirement property specialist Retirement Homesearch, also shows that the number of property viewings at 2,974 and instructions at 513 remained steady on first quarter numbers, showing that registered buyers are still actively looking to downsize.  Read more on the Property Wire website.

New Home Building Needs To Address The Needs Of Older People

New home building in the UK to cope with the country’s chronic shortage of housing should not concentrate just on the needs of first time buyers and younger people, according to a new report from the International Longevity Centre UK (ILC-UK).  Whilst the Government’s focus on first time buyers is understandable faster progress in helping these younger generations get on the housing ladder would be made if more energy was put into meeting the housing needs and aspirations of their parents and grandparents. The report calls for more housing to be built by local authorities, a wider range of commissioners of new house building, better rental offers for older people with secure tenancies, more shared ownership options for older people and overall greater choice for older people in general needs housing.  Read more on the ILC website.

Why Has Britain Stopped Building Bungalows?

The number of bungalows being built in the UK has collapsed, despite an ageing population. Why? It's the building that's symbolised a quieter, gentler way of life for more than a century. Bungalows are sold as a dream for those approaching retirement, wanting to do without the hassle of having to climb stairs. They also provide easy access for wheelchair users and those unsteady on their feet.

With the UK's population ageing, demand for single-storey homes is likely to grow. But developers dealing with rocketing land prices are under pressure to build further upwards. Read more on the BBC website.

“Buy-To-Let-To-Retire” Is The New Downsizing

One in five over 55s are considering buying their ideal retirement home now and letting it out until they retire, according to research from a pensions provider.  Prudential found that more than half of pension savers plan to raid their pension savings to fund their ideal retirement home. Prudential says the trend of ‘buy-to-let-to-retire’ appears to be challenging the traditional route of simply selling up and downsizing as a one-off property deal on retirement. Of those over-55s who have already made a buy-to-let investment, nearly one in three (32%) said they had done so to secure a property to live in one day. Read more on the Landlord Today website.

Call For National Task Force On Retirement Housing

A national task force should be set up to focus on increasing the supply of retirement housing, a report has recommended. United for All Ages, a social enterprise which aims to bring younger and older people together, has outlined 20 ideas to “promote intergenerational equity”. A number of the ideas relate to housing and care, including a suggestion of a new task force on retirement housing. Other ideas suggested in the report include building 300,000 homes a year, with a mix of affordable rent, Starter Homes and retirement housing. Download a copy of the report from the United for All Ages website.

Growth of Homes for the Elderly

More retirement homes were registered to be built in the UK in the first six months of this year than the whole of the previous year, according to new figures released by NHBC. Builders registered a total of 2,337 properties specifically designed for the elderly in the first six months of 2015 - outstripping the total 1,919 which were registered for the whole of 2014. The growth in retirement homes comes as NHBC reported that more than 41,000 new homes were registered in the UK during the last three months - an increase of 12% on the same period last year. Read more on the NHBC website.

A Third of 'Middle-Agers' Not Able To Afford Current Homes after Retiring

One in three 40- to 50-year-olds believes they will not be able to pay their rent or mortgage once they retire, according to research by Raglan Housing. According to the survey, the ‘middle-agers’ believe their pensions, savings and investments will not be enough to keep them in their current homes. More than a quarter think they will need to move to cheaper accommodation, while 47 per cent don’t know what they will do.  The survey, carried out across the UK, showed 44 per cent believe there is a lack of suitable affordable retirement housing.  One in four people in Britain is now aged over-55 and this figure is predicted to rise to one in three by 2030. Read more on Inside Housing.

Councils Resist Retirement Housing

Local authorities accused of halting plans for older people’s housing because of the rising cost of elderly care. Councils have been accused of resisting development plans for retirement housing because they are concerned about the mounting cost of care. Housing associations claim some council planners are blocking proposals because they are wary of older people moving into their area and placing more strain on social care budgets. The cost of care could be set to spike as a result of proposed legislation outlined in the Care Bill, which is currently going through parliament, under which older people will pay up to £72,000 in total for their care with the council paying the rest. Read more on Inside Housing.

Don't Blame Older People for Housing Crisis

Calls made in the past for older people living in large homes to be penalised were both ageist and irrelevant, a think tank has claimed.  Instead people should 'right-size' their housing throughout their lives to get the most out of their homes, according to a report from the International Longevity Centre-UK's (ILC-UK).  The report suggests that a lack of desirable retirement housing dissuades many older people from moving - reducing the supply of appropriate homes for younger people.  It points out that the building of housing for older people has collapsed from over 30,000 units a year in the 1980s to around 8,000 today. Download a copy of the report from the ILC website.

Over 3m Family Homes Can Be Released If Elderly Encouraged To Downsize

The equivalent of a city the size of Manchester (500,000 people) needs to be built every two years to house the UK’s ageing population, but more than three million family-sized homes can be released by building more retirement homes.  Or so said McCarthy and Stone, a company that specialises in the construction of retirement flats, claiming that up to 3.7 million family homes could be released by encouraging elderly people to downsize. However, there remains the matter of a shortage of specialist housing suitable for the country’s ageing population.  A building programme to meet this shortfall would not only release up to 3,750,000 existing and much-needed family-sized homes to tackle the UK’s family housing shortage, but would also sustain 250,000 new construction jobs a year to 2033 and provide a significant boost to the economy, the company said.  Read more on the Housing Excellence website.

Reviving the Economy by Moving Out the 'Bedroom Blockers'

Lord Best has come up with a new strategy that will, in his words, "solve all the country's problems".  Here's what the peer proposes: building 100,000 retirement, supported housing and extra-care homes a year. The trickledown effect will, in one handy flourish, pull Britain out of double-dip recession while also solving the country's acute and growing housing crisis.  The boost to the construction industry would, by his calculations, create between 300,000 and 500,000 new jobs.  Building 100,000 homes designed especially for the needs of an ageing population would also help to house 350,000 other people. By selling their under-occupied large family homes and downsizing to smaller, specialist properties, our older people could help a whole generation of potential first-time buyers who are priced out of the market.  Lord Best said many of these homes would have been untouched and undecorated for up to 35 years, and so would sell at the lower end of average market value and be affordable to families struggling through recession. "Nearly all of the 7.8m people of pensionable age have more than two spare rooms, making way for 350,000 family [members] with children."  Read more on the Guardian website.