Senior living: Going the extra mile for extra care

Old age is no longer seen as a defined way of life as it has been in the past, and this has generated increasing diversity among older people in terms of age, culture, wealth, ability and lifestyles. Furthermore, the greater level of independence into later life that this demographic now requires is driving demand for a variety of senior living and care provisions. Research shows that moving to more accessible, purpose-designed accommodation can lead to health benefits including the slowing of age-related diminution in functional ability, reduced hospitalisation, and better social and mental wellbeing by lowering the sense of isolation often felt by older people who remain in their own homes. The UK demographic shift in recent years means that the number of people aged over 65 is increasing. Savills research anticipates that the number of people in England aged over 65 will grow from 10.6m today to nearly 17m by 2035. As a result of the growing elderly demographic and more bespoke levels of care that the older generation is requiring, the senior living market has evolved substantially in the past decade. One area in particular that has seen significant growth over recent years is social extra care housing, which is helping to bridge the gap and provide an alternative to local authority-funded residential care, a provision that has struggled with the supply of beds and increasing costs. The social extra care model is a much-needed and cost-effective alternative for those in their elderly years who may have previously presumed that a residential care home was their only choice. Instead, extra care allows individuals to retain their independence by living in their own flat, but with the added benefit of shared communal facilities within the development and bespoke care provided by an on-site domiciliary provider. Services are tailored to an individual’s needs and include personal care and assistance through to domestic help, such as with shopping and laundry. This increased appetite for extra care has resulted in a rise in private renting within this market, which had previously been predominantly focused on the social rental model. Given that an individual’s care needs can fluctuate, support costs for social extra care can be lower than those in a residential care home, which come at a fixed weekly cost for each resident. In addition, for local authorities, the costs for extra care are split between social care and housing rather than just coming out of social care as it does for placement in a residential care home. Private developers Social extra care facilities have typically been developed by local authorities and housing associations. However, we are now seeing growing appetite from private developers who are recognising the opportunity to create a more diverse offering for this expanding age demographic. In response to customer preference, private developers have continued to target the wealthier end of the elderly population, offering high-quality residential accommodation in attractive settings. It is recognised that the elderly population is increasingly discerning and requires on-site social facilities such as a restaurant, bar, gymnasium, facilities for meetings and clubs, shops, hairdressers, therapy rooms, laundry services, cash machines, postboxes and, sometimes, a swimming pool. There is, however, a significant proportion of the market which would find such schemes unaffordable. With growing pressures on adult social care budgets, a reduction in state-funded residential care home supply, and an increasing elderly demographic, the development of social extra care facilities is going to be much needed. This is generating significant growth in the development of for sale and for rent private extra care, and retirement product is growing at a rapid pace driven by market demand. Craig Woollam is head of healthcare, Savills