Living the dream

Retirement housing in the UK has seen an influx of investment over recent years, drawn by an ageing population and a limited supply of retirement housing compared to other developed nations, such as the US, Australia, and New Zealand.

Despite this, the sector is still not meeting demand: a study conducted by Bayes Business School found that the 7,000 new homes designed for the elderly each year were "Insufficient to serve the 180,000, 65-plus households that will be created each year over the next decade".

There are currently 12.7m people aged over 65 living in the UK (18.9% of the total UK population). By 2066, this is projected to increase to 20.4m, making up 26% of the UK population. The fastest increase is expected amongst those aged 85 years and over, who are predicted to increase from 1.8m people (2% of the UK population) to 5.1m people (7% of the total UK population) in 2066.

In addition, people aged between 55-64 currently hold the highest median wealth of all age groups in the UK (followed closely by those aged 65-74) – comprising of property, financial and physical assets, and private pensions.

We look at two new approaches to creating retirement villages to meet the needs of users, developers and communities:

Reposition into city centres
Retirement villages have traditionally been built in rural areas, but several firms have started constructing apartment blocks designed for the elderly in urban areas, taking advantage of the reduction in office and retail sites. These include Legal & General and Retirement Villages Group (owned by AXA IM), which both plan to invest £2bn over the coming years to develop high-quality retirement accommodation close to and within city centres.

As well as providing an alternative for vacant high street space, purpose-built apartment blocks for the elderly within city centres serve the needs of an ageing population, who want to live vibrant social lives. And increase economic vitality in town centres across dayparts by creating demand during work hours.

Community engagement
Retirement villages such as the Audley Nightingale Place in Clapham (seen above) offer a health club, cinema, library, spa, bistro, restaurant, and home care services. These are akin to a luxury boutique hotel that also serves as a hub for residents to build friendships and socialise.

As well as catering to the needs of its residents, conveniently placed retirement living can also look to serve the needs of the wider community. For instance, horticulture was one of the major winners of the pandemic, with gardening the second most popular lockdown activity after watching TV, ahead of cooking, reading, and exercising, according to a survey by GlobalData market research. The activity has been embraced across age groups, with participants citing benefits to their mental and physical health.

However, as one in eight households in the UK has no outside space, community allotments serve as a resource for growing horticulture demand from urban dwellers. And with their large on-premises demand, retirement villages look to be ideal venues for such spaces.

This theme of community engagement fits in well with retirement villages, which would also be suited to facilities such as flexible event spaces, sporting venues, and libraries that could serve the needs of both residents and the wider community.

Shifting consumption habits are forcing high streets to reassess their composition. Accommodation aimed at residents aged over 65 years is in high demand and can bring wider economic benefits by tapping into an audience with surplus housing equity, as well as serving as a hub for community initiatives.

Bikram Sandhu