According to the Inaugural Retirement Confidence Index* from McCarthy & Stone, the UK’s largest retirement housebuilder, retired people in the UK are currently exhibiting soaring levels of confidence.
Our own experience bears this out as our customers frequently mention they are looking forward to the future and the chance to do something new and exciting. For many this involves downsizing to rent a purpose-built retirement property. 74% of our tenants tell us that renting on an Assured Tenancy gives them security and peace of mind. Many say they have gained a new lease of life through making new friends, taking up new hobbies and regaining their independence. For some, moving to a different part of the country has given them a fresh start in a location they have always wanted to live.
Whilst downsizing into more appropriate homes may be a solution for some, a chronic shortage of suitable homes for older people may make this an impossible dream for many.
A report from Knight Frank^, ‘Retirement Housing 2016’ highlights that by 2037 three quarters of households are likely to be headed up by someone aged 65 or over. It also states that according to the University of Reading only 2 per cent of current housing stock is retirement housing. With an ageing population – there are an estimated 11 million people aged 65 and over in the UK today – the provision of suitable housing which meets the needs of older people is more crucial than ever. Knight Frank estimates that potential demand could reach 30,000 retirement units per year, however, current planning is for just 5,500 retirement housing units per year: a significant shortfall, which we believe needs immediate attention.
Without greater investment in retirement housing, many older people will be stuck in homes that no longer suit their needs. Consequently, there will be fewer homes available for those further down the ladder. Housing policy needs to address the question of under-occupancy today, otherwise our current housing crisis is only going worsen.
We applaud the optimism of today’s older people and we are doing all we can to support this by providing suitable, purpose-built retirement property for rent on Assured Tenancies across the UK. There is much more to be accomplished to encourage confidence in the retirement housing sector and we believe there are exciting times ahead for the Industry.