With the UK population’s average age continuing to rise steadily, so-called “integrated retirement communities” look set to see the greatest growth in the later-living market.
Knight Frank has singled out IRCs – which it defines as bringing together restaurants, bars, gyms and cinemas alongside personal and domestic care – as the most promising segment of the senior housing market. The agency expects to see growth of 50% between now and 2026, to 84, 353 homes.
Lauren Harwood, an associate in the seniors housing team at Knight Frank, said: “We are seeing a significant amount of investment into the IRC part of the market. This segment is widening in terms of propositions, tenure options, locations and price points. IRC schemes are scaling up, with more being built in urban areas and an increasing focus on the mid-market.”
Investment in the UK’s seniors housing market totalled £1.3bn in the first half of 2022, Knight Frank said. New scheme launches include Vita Group choosing a first site for its later-living brand, Symphony Park (pictured).
The new entrant in the sector bought a site at Bruntwood SciTech’s Alderley Park in Cheshire for its first development, offering 159 one-, two- and three-bedroom apartments with services and amenities that the developer described as “akin to a five-star hotel”.
Also active is Riverstone, which has launched a site in Kensington and now has sites in the pipeline in Fulham and Hampstead.
Another significant development in the IRC segment was ActivumSG Capital Management funding the launch of a new later-living developer and operator, Opus. Opus is aiming to deliver later-living facilities in villages across the UK. The model will deliver high-quality independent and assisted living, starting with Edgbaston Place in Birmingham, and Stoneham Park near Southampton.
Knight Frank forecasts that delivery of homes within the UK’s senior housing sector is going to increase by 255% over the next five years compared with the previous five years.
The consultancy is forecasting that the sector will grow by 8% by 2026, with an additional 63,290 homes predicted to be built over the next four years, taking the total number of senior homes in the UK to 819,819. Knight Frank said 36,427 of these homes are already allocated within the development pipeline.
Tom Scaife, head of seniors housing at Knight Frank said: “A deepening pool of active investors, coupled with high investment volumes, is pointing towards growing confidence in the sector’s ability to deliver attractive, sustainable returns.”
To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @asoni7185 or @EGPropertyNews
