2026: the year retirement housing steps out of the shadows

For those who need more support, retirement housing is a good option. It helps older people live safely, independently and with dignity, supported but not institutionalised. It reduces loneliness, fosters connection and creates vibrant communities. Downsizing frees up larger homes for growing families and first-time buyers, easing pressure on the wider market.

Retirement developments revitalise town centres, bringing footfall and sustained local spending. They reduce hospital admissions and delay the need for residential care, saving the NHS millions.

Almost one million people live in retirement housing in 780,000 properties. This is not a niche sector, it is a sizeable and vital piece of UK housing infrastructure. Yet new supply has collapsed in recent years.

“Retirement housing helps older people live safely, independently and with dignity, supported but not institutionalised”

In the 1980s, the sector built around 20,000 retirement properties annually. Today, that figure is just 7,000. Estimates show it should be closer to 50,000, which would make a meaningful dent in the government’s 1.5 million new homes target.

But this would entail overcoming several challenges. In terms of new provision, planning policy is often silent on retirement housing, there are real viability issues created by planning taxes, and rising build costs curtail new development.

There are also consumer concerns around costs and affordability, along with a general lack of public awareness and understanding.

Much of the existing retirement stock, particularly in the social sector, which makes up around two-thirds of all retirement properties, was built in the 1960s and 1970s and now needs refurbishment. Without investment, it risks stagnation.

I see three solutions to these challenges.

First, the sector must continue to evolve its models to ensure they remain appealing. This means choosing sites where older people genuinely want to live, with great designs and high-quality construction. Marketing must recognise the unique needs and aspirations of older people. Running costs should be transparent, fair and affordable, with the right mix of ongoing and high-quality property management, support and care services.

This could be funded through a ‘pay as you go’ service charge, or by utilising housing equity through an exit fee so people can ‘enjoy now, pay later’. Both approaches need to be properly regulated and equitable. Mixed tenure would also widen appeal, and the private rented retirement sector is a particular opportunity.

Second, the government and the sector must work together to ensure standards remain high and public confidence is retained. The statutory code of conduct for the private leasehold sector is operated by the Association of Retirement Housing Managers. The code should be given greater prominence and be renewed and updated. It will also need to be aligned with proposals to introduce commonhold.

We recognise the opportunity presented by commonhold to build confidence and empower residents, but it may need some modification to ensure it works for retirement developments.

Third, the government must act on the recommendations made by the Older People’s Housing Taskforce. This includes reforming planning so it encourages provision through the NPPF and local plans. The taskforce called for a planning presumption in favour of retirement housing and exemptions from affordable housing and CIL, which would address viability issues. 

It should be noted that the new NPPF, published this week for consultation, starts to move in a more helpful direction, stating that 40% of new housing should be built to M4(2) or M4(3) accessibility standards. The taskforce also called for a greater role for Homes England to fund redevelopment of existing stock, and make 10% of its new supply for older people. The forthcoming Housing Strategy presents the opportunity to do this.

As many families quietly confront the realities of ageing with their loved ones this Christmas, we should be asking: why aren’t older people at the heart of our housing strategy? Retirement housing is not a luxury, it is a missing piece of the housing puzzle. It is time for the sector to step out of the shadows.

Paul Teverson, director, Retirement Housing Group