Yet more population projection figures published by the government highlight the growing housing needs of our ageing population.
Figures just released from the 2011 Census show that more than half (54%) of all household growth will be for those aged 65 or over by 2021.
This is set to have a big effect on land use in the UK, and demonstrates that future development, housing and planning policy must be focused on the needs of our ageing population.
Despite this, a recent House of Lords report, Ready for Ageing?, demonstrated that the UK’s specialist housing provision lags way behind other developed countries.
Just 2% of housing stock is built as retirement housing, compared with 17% in the US and 13% in New Zealand and Australia. By 2033, it is projected that more than 13m people will be over 65, (compared with 9.2m now), with a 100% increase in those aged over 85 expected by 2030.
Yet, just 1,600 specialist retirement homes were built for ownership in 2012, and a city the size of Manchester (circa 500,000 people), needs to be built every two years for the next 20 years if our country is going to address its needs for more specialist housing.
The House of Lords’ report was blunt in its criticism. Government, local authorities and society are “woefully underprepared” for the changing nature of our population. As the report stated, it is time that government gave as much priority to promoting adequate housing to older people as it gives to younger people.
There is much that government could do to encourage the retirement housing sector, from ensuring that new charges like the community infrastructure levy don’t unfairly hit retirement housing because of the large amount of shared floorspace it provides, to ensuring that councils plan adequately in their local plans for older people’s accommodation.
But ultimately, it comes down to us in the development sector to meet this growing market opportunity. McCarthy & Stone, for instance, has acquired more than 170 sites over the past three years and allocated £1.5bn of spend on land and construction for the next five years on retirement housing. Ideal sites for retirement housing are, surprisingly, in busy urban areas and include former retail units, petrol stations and offices, which can all be regenerated and developed to meet this ever-increasing need.
We are also planning for the future needs and aspirations of the “new” older generations with in-depth research into the likely housing and lifestyles that today’s baby boomers want, and we are securing land opportunities accordingly.
There are great opportunities in this sector, particularly if government and local authorities get a grip on this housing demand. A super-sized building programme would also be a win-win for family homes and industry, and could be funded by the £1.1trn of housing equity held by older people, which would be released by downsizing. Each retirement home also frees up a much-needed family sized home that would benefit the entire housing chain, creating more jobs as homes as homes are renovated or redeveloped.
The sector has a bright future.
Gary Day is land & planning director, McCarthy & Stone
