Yahoo Finance The housing crisis harms the life prospects of older people too
As the UK grapples with an aging population, the issue of appropriate housing for older people has never been more pressing. Aspirational, inclusive and age appropriate housing options are critical to meet this shifting demographic.
The current housing landscape in London and the UK falls short of meeting the aspirations of older people. Today’s older generations are more active, independent and socially engaged than ever before. They covet housing where they are proud to live, where they can maintain their independence, pursue their interests and remain connected to their community.
Despite significant interest from operators and investors in developing retirement communities, there still remains a substantial gap between supply and demand. The reality is that there simply aren’t enough retirement communities being developed to accommodate the growing number of older adults, the reasons for which are multiple and complex. Finding viable sites in the right location, supported by local authorities through the planning system, continues to pose a major challenge.
The lack of supply of new build developments is compounded by the fact that many existing older people’s housing options fail to meet the needs and aspirations of today’s ageing population. The condition of our 1970s sheltered housing is a stark reminder of the urgent need for political reform in the housing sector. Built decades ago, many of these facilities are ill-equipped to support the physical and social needs of today’s residents.
From inadequate facilities to poor environmental credentials, existing sheltered housing often falls short. Insufficient grant funding, construction costs, and the application of VAT to upgrade these properties often proves prohibitive, further complicated by the challenges of remodelling due to the original construction and design. In an era where the sustainable reuse of buildings is foremost in our minds, upgrading these properties should become a priority to avoid further impacts on the availability of suitable housing options.
The sector is in dire need of some tangible support from the government to increase the choice and supply of older people’s housing. The delivery of a range of affordable, later living options must be a priority for future governments to ensure older people have access to beautiful homes within their community where they can age-in-place; Support from the government needs to include;
A stamp duty exemption for ‘last time buyers’ moving into retirement properties. This policy would encourage ‘right sizing’ and free up family housing.
Funding and VAT relief to encourage the reuse and remodelling of existing sheltered housing, extending the life of these buildings to meet the needs and aspirations of current and future residents.
Planning guidance specific to older people’s housing to enable the application of an appropriate class us; this would eliminate the need for a blanket approach to CIL contributions and the submission of Viability Statements to support operators’ financial models.
Local plans should prioritise older people’s housing and allocate appropriate sites to meet local needs across all tenures.
Planning policies must mandate that new communities include a proportion of older peoples housing.
As the Older People’s Taskforce draws to a conclusion over the forthcoming weeks, the later living sector remains optimistic that these issues will be addressed within their recommendations to Government to stimulate much needed growth to this vital part of the housing market.
Jenny Buterchi is a Partner at PRP
