UK needs 614,000 senior living homes to address supply shortage

The UK is facing an undersupply of 614,000 senior living homes, according to research by CBRE. The firm’s first senior living survey analysed responses from more than 2,000 UK residents aged 55-plus and found 62% were open to moving into a senior living scheme in the future. It identified the cities where growth potential is highest based on stock availability and consumer preferences. A quarter (24%) of respondents said they were considering a move in the next five years, with demand highest in Birmingham, Edinburgh, London and Southampton. However, supply is notably constrained in these cities and more than 69,000 homes would be needed to address the supply gap. The report also found that 63% of respondents in the 75-plus bracket were yet to downsize, highlighting a potential cohort for senior living schemes. Respondents across a number of cities said they would consider renting in a senior living scheme to free up equity from the sale of their house. Alice Marwick, head of operational real estate research at CBRE, said: “Historically, senior living schemes have targeted prospective residents who live in more affluent areas of the UK due to the high costs of land and construction.” “On a national scale, the majority of housing wealth distribution falls into the £250,000- £500,000 value segment, meaning there is a large cohort that would benefit from senior living schemes if there was a more affordable option.” Andrew Surgenor, senior director, of operational real estate at CBRE, added: “As a member of the government’s Older People’s Housing Taskforce, it’s evident that there is a need to amplify the choice and quality of housing available to this cohort of the population. “Developers can address this with increased tenures, including rental and affordable tenure, unlocking potential for a more diverse, accessible offering.” To send feedback, e-mail akanksha.soni@eg.co.uk or tweet @AkankshaEG or @EGPropertyNews Image © Shutterstock