Research says not enough homes for retired people are being built in the UK

Housing policymakers in the UK are too focussed on providing for first time buyers and ignoring the need for more homes for people who are retired, according to a new analysis report.

While everyone agreed that there is an urgent need to address the undersupply of housing across the UK, there is also a need to focus on the type of housing needed, looking at demand in terms of demographics as well as overall numbers, says the report from real estate firm Knight Frank.

‘While much attention is quite rightly 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 designed for older people,’ the report says.

The analysis of the latest data from the Elderly Accommodation Counsel (EAC) shows 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 total housing stock, and is dominated largely by older stock in the affordable housing sector.

The report suggests that while the retirement housing market may seem specialised, creating homes for older people has wider implications for an interconnected market. ‘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 more family houses become available, allowing more people to move up and down the housing ladder,’ it explains.

According to Emma Cleugh, head of institutional consultancy at Knight Frank, while not all older people will choose to move from their existing homes as they age and many will stay, unaided or with care, but a significant proportion of older people would like to move into purpose build accommodation.

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 home owners.

‘Increasing the provision of housing suitable for older people will have direct benefits across the whole housing market, for all generations. There is 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 said.

The figures from the report show that private retirement housing accounts for just 0.6% of all dwellings in the UK. The delivery of new units in 2016 is projected to be around 5,500, accounting for around 3% of estimated total housing delivery.

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

In order to enhance delivery, the report points out that the support of local authorities through the planning system will be needed. This issue was underlined in the recent HAPPI 3 report from the All Party Parliamentary Group (APPG) on Housing and Care for Older People which called for local authorities not only to consider housing need when drawing up local plans, but also the type of housing need, taking age into account.

Cleugh added some cities are actively planning retirement housing. In London, for example, the city plan sets targets for the delivery of specialist housing for older people across the capital. To meet the plan’s objective, some 3,900 specialist housing units should be delivered every year over the next decade, of which 2,620 should be private with the added proviso that existing rented units which become unfit to use should be replaced outside these totals.