The scope for growth in retirement housing is helping improve the retirement market for the better
Posted on: 09 August 2018 by Peter Girling
The demand for retirement housing will be enormous over the next few decades as the growing retirement housing market changes the perception of retirement living for the better.
The huge scope for growth in the retirement housing market is helping to change the perception of retirement living for the better.
The recent Europe ILU and PwC’s 2018 Emerging Trends in Real Estate Report[i] found that the retirement and assisted living sector is now second only to logistics in terms of growth.
Another report from Knight Frank, ‘The case for Retirement Living 2018’[ii], indicates the potential for this market. Knight Frank highlights that by 2050 one in four people in the UK will be aged 65 or over, however, the retirement housing sector currently only comprises 725,000 homes, which equates to just 2.6% of the total housing stock in the UK.
The demand for retirement housing will be enormous over the next few decades and developers will need to respond by building more homes specially designed for older people that are functional to their changing needs, but also aspirational and in popular locations.
We are beginning to see more developments being built ranging from luxury club house style developments and retirement villages, to purpose built apartment complexes aimed at retirees – however, we still have a long way to go to have enough homes for older people to move to should they wish.
Last year, Legal and General estimated that there are 3.3 million people who would like to downsize in the UK. This is likely to increase as more people recognise the benefits of living in a retirement community, including the social aspect and additional support facilities they offer – which are both important to people as they age.
Purpose built retirement developments are usually located in suitable sites with access to appropriate facilities and yet the development is normally in a mixed community, so retirees are not held in a retirement bubble, which can be an issue with retirement villages. Different sets up will have different appeal depending on people’s circumstances and outlook.
While some people will want to remain in their own homes with a little support when they get older, others may wish move to a retirement community. It’s all about choice. We’re also noticing more people are choosing to downsize and rent in a purpose built retirement development, rather than buy – something we believe will become increasingly common in the future.
After all, why buy when you are older if there is an option to rent on an Assured Tenancy, which provides security and flexibility, plus enables people to free up capital and no longer have to worry about ongoing house maintenance and upkeep.
Girlings offer retirement rental property ranging from one and two-bedroom apartments in purpose built developments to an exclusive range of properties with a ‘Club House’ feel.
All rents include service charges and property maintenance, plus the developments have a resident’s lounge and communal gardens, 24-hour emergency call system in each apartment and a development manager.
Club house properties will have additional facilities such as a restaurant, bar and gym, depending on the development.
For more information visit: www.girlings.co.uk