Shortage of elderly living housing apartments reveals scale of housing crisis in the UK
BNP Paribas Real Estate analysis has revealed a shortfall of more than 487,000 senior living housing units across the UK, highlighting the urgency for a greater allocation of sites to the sector as the housing crisis intensifies.
The research indicates that over 3,000 communities would need to be built to address the current lack of supply, while also highlighting the 31 per cent expected growth in over 65s over the next 15 years, increasing demand on an already scarce supply.
According to the English Housing Survey, 80 per cent of over 65s own their own home (either with a mortgage or outright). In the latest Housing Futures report, a consumer survey published by Strutt and Parker found that 48 per cent of those over the age of 66 would prefer to rent their next home.
Sam Rowland, head of healthcare and senior living at BNP Paribas Real Estate, commented: “The current shortfall in housing product for senior living is indicative of the consumer misconceptions around the offer it provides and comparisons to the likes of care homes which provide an entirely different capacity of support to its residents.”
“The lack of supply of homes across the UK is a cause for alarm. We live in an ageing population and also ‘generation rent’, and, with greater perception and awareness, investment should increase to help support and combat the crisis. Rental is becoming a more viable option for those who wish to downsize and have the available capital and/or can lease their existing property out in favour of this sector, which can put often underutilised family housing stock back into the market, improving availability for those in earlier stages in life.”
“Senior living schemes consistently evolve to meet the needs of changing demographic requirements, which is part of its strength and appeal as a viable and amenity-led rental option with a real lifestyle-centric offer. There are many benefits to providing this in terms of the improvements it can make to residents’ health and wellbeing, thus relieving pressure on the NHS, the community it can provide and the boost it can provide to local economies in terms of disposable income.”
Rebecca Shafran, alternatives markets research at BNP Paribas Real Estate, added: “Homeownership unaffordability continues to ensure demand for rental property is high, yet the number of available homes has declined. The rising cost of living and increased interest rates is anticipated to impact affordability further, driving more people to the rental market. The government, local authorities and the real estate industry desperately need to plan ahead to create homes or free up alternative housing options for the growing percentage of lifelong renters and buyers.”
According to ARCO (Associated Retirement Community Operators) only 0.6 per cent of over-65s currently have the opportunity to live in an Integrated Retirement Community in the UK, compared to at least 5-6 per cent in New Zealand, Australia, and the US. It estimates that around 70,000 Housing with care units in the UK house 90,000 people. There are 12.5m over 65s living in the UK (source ONS Population Projections 2020-based) and this is expected to increase to 16.5m by 2036.
Recently, local authorities, care providers and housing associations were invited to apply for grants of £75,000, so they can test out with older people which technology tools and digital housing services work best for them.
