Constraints to investment into retirement housing communities ...................................................................................................24

1. Executive summary

The aim of this report is to review the existing evidence to provide an understanding of supply, demand and investment in the market for retirement housing communities in England.

The increase in the proportion of older people has been described as “one of the most significant social transformations of the twenty-first century” (United Nations, 2015). As we age, what we need from our homes can change. However, older people are a very heterogeneous group, and there is diversity in what we need from our homes as we get older. Currently in the UK, only just over 3% of all households made up of older adults move every year, with most of these moves being within mainstream housing, rather than moves into specialised housing for older people (Hammond 2018). Many people do prefer to age in their existing home, but for those who seek a new home to meet their changing needs, their choices can be limited. The supply of specialised housing for people as they age is relatively low in the UK. This report identifies numerous constraints to supply, investment and demand in the market for specialised housing for older people, and for retirement living communities in particular, and makes a number of recommendations.

A notable point about supply identified in this report is that retirement living community development is unviable in many areas outside of London and the South East of England. Coupled with the fact that the majority of house moves made by older people are relatively local, this constraint to supply reduces housing options for those living elsewhere in the country, particularly home owners who do not qualify for assistance with housing costs. Unless the viability of retirement community development can be improved and the supply of mid-range retirement properties be raised, these households will have very little choice around moving in later life.

The report draws attention to an additional gap in the market for retirement housing in England. Due to a range of supply, demand and investment factors, those most likely to be able to access specialised housing when moving are social renters and wealthier home owners. Home owners with modest access to wealth have far fewer options, should they wish to consider moving to specialised housing in later life. Addressing this ‘rightsizing gap’ (Hammond 2018) will require that constraints to supply, demand and investment in the market for retirement housing are addressed in combination.

However, we observe a lack of a strong strategic vision of housing for older people, at both national and local authority levels. Some commentators feel that national frameworks fail to

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