The plight of the UK’s housing market is well known. Hardly a day goes by without us being inundated with facts and figures illustrating the supply/demand imbalance, the difficulties facing those trying to get a foot on the ladder and rocketing house prices.
In my opinion, one which is shared by many in our sector, this is a situation that has been exacerbated by both the government and major housebuilders, which continue to focus on the wrong end of the market. Of course, it is crucial that we pay due attention to making home ownership a realistic possibility for young people, and building affordable homes is a big part of that.
But what is continually overlooked is that alongside housebuilding pledges, we should be encouraging older generations to downsize. More often than not, baby boomers are stuck in unsuitable housing, something that puts the whole property market at risk of grinding to a standstill because those below cannot climb the ladder. It is imperative that the industry now turns its focus to finding a cure for the housing crisis, rather than short-term and expensive measures to treat the symptoms,.
We are a nation living longer and healthier lives. Not only this, more of us are choosing to live, or finding ourselves living, alone into our old age, resulting in housing stock that is becoming increasingly under-occupied – by more than 16m people, to be exact. Findings from a recent report by the International Longevity Centre think-tank highlight the severity of the situation: nearly nine in 10 of the 65-79 age group live in under-occupied housing, with more than 50% living in homes with two or more excess bedrooms.
This age group is part of a generation that is more demanding than ever. Reaching the age of 65 is no longer a step into old age; these people know what they want, and what they don’t want is to give up the lifestyle and independence they have come to know. Having suitable, high-quality but, most importantly, aspirational, retirement living options available that allow this to be maintained would surely encourage downsizing. This would go a long way in easing the already severe strain and lack of movement in what is a bottlenecked market, freeing up much-needed family-sized homes.
That is not to say there have not been promising signs of change. The all-party parliamentary group on housing and care for older people, which includes members such as Lord Best and MP Ruth Cadbury, has recently called for greater incentives for the 8m over-60s that are reportedly interested in downsizing.
Help to Buy assistance for older buyers, exempting older people from stamp duty when moving to a smaller property, and encouraging councils to ensure that local plans give priority to older people’s needs are just some of the proposed reforms and actions that Audley wholeheartedly supports.
While these are promising signs, we must not try to run before we can walk. The fact remains that the level of choice of suitable housing for those aged over 65 must be improved.
It has been predicted that by 2030 there will be a shortfall of 160,000 retirement housing units. Housebuilders, the healthcare sector, policy makers and the government must now recognise the increasingly central role the retirement living sector plays in the housing mix, so we do not allow supply to dwindle further.
Only then can we avoid what could be a potential housing black hole. This is not a problem that can be solved overnight, but its benefits will be felt by millions for many years to come.
Nick Sanderson is chief executive, Audley retirement villages
