The number of homes being built specially for retired people in the UK is set to increase significantly by 2022
The number of properties being built specially for retired people is set to increase significantly by 2022 as the demand for this kind of home rises in the UK due to an aging population, new research suggests.
Currently there are 16 people who would consider downsizing for every existing private retirement housing unit, according to new research from real estate firm Knight Frank.
Its retirement housing report says that the private retirement market is forecast to reach a value of £44 billion by 2022, a 50% increase and the number of units is set to rise by almost 30%.
The analysis reveals that private development has accounted for 54% of all new units delivered in this sector annually since 2000 and that is set to rise to 78% of total delivery in 2022.
It also points out that the supply of later living homes is dwarfed by the rate at which the British population is ageing as the number of people aged over 65 is forecast to increase by 20% to 12 million by 2027. Advancements in healthcare mean individuals are living longer lives and managing health conditions better.
The report calculates that there is a need for three million retirement living properties to house the number of people aged over 65 that would consider downsizing. Based on the assumption that 25% of over-65’s in their existing homes would consider downsizing into some form of specialist retirement living.
It also suggests that there are around four people wanting to downsize for every existing retirement living home in the UK. There are, however, slight regional variations with the South West having the highest supply with 268 homes per 1,000 people, with London, the North East and the East of England at the lower end of the scale with less than 250 homes per 1,000 population.
Meanwhile, separate research suggests that the South East will benefit from the highest number of new private retirement living units at 2,733 by 2020 while the North East will have the lowest amount of new private retirement units at only 79 by 2020.
Overall, from the 11 UK regions, a total of 9,540 new private retirement living units are projected to be fully complete by 2020.
Managing director of SavoyStewart, Darren Best said the demand for specialist retirement properties is only set to increase in the future as the general population lives longer. As private landlords and developers cater to this demand, by designing and constructing new retirement living units, they should wisely deliberate over the various wants and needs of the elderly.