Survey finds 42% of developers view later living as a key driver of market growth

The survey was conducted by Censuswide in February this year. The market research firm surveyed developers across England, Wales and Scotland.

Last year, the government-commissioned Older People’s Housing Taskforce found that most current options for private leasehold housing for English households aged 75 years and over was “unaffordable”.

One year on, 64% of developers in the survey said the market had already improved, with 11% reporting it had improved significantly and 53% saying it had improved slightly.

The taskforce set a target to fund one in 10 homes through the Affordable Homes Programme for older people. It also said ministers should expand funding for Homes England’s Older Persons Shared Ownership scheme and change planning guidance to encourage the development of more affordable retirement housing.

The taskforce said the UK needed between 30,000 and 50,000 new later-living homes a year to meet the demand of the ageing population. At the time, only 7,000 homes a year were being built.

Dasos Kirtsides, head of healthcare at Shawbrook, said: “As part of the government’s housebuilding plans, flexible and innovative solutions are needed to provide adequate retirement-living options, which presents an excellent opportunity for property developers.”

Investors are increasingly looking to strike deals in the later-living sector.

Last year, private equity investor Meadow Partners joined up with developer the Affordable Housing & Healthcare Group to buy six of its senior-living shared ownership schemes. Meadow acquired 550 apartments across the South West of England and aimed to fund the development of a further 500, in a deal totalling around £500m.