Whilst Brexit and political uncertainty have slowed the wider housing market, housing with care is a growing sector that represents a significant opportunity for developers and investors.
The demand for luxury retirement villages with high quality care facilities such as LifeCare Residences’ Battersea Place, remains strong as retirees are keen to scale down on space, but not on quality or the lifestyle that living in London offers.Nigel Sibley, Chief Executive at LifeCare Residences comments, “Although Battersea Place is still in the very early stages of apartment re-sales, it is an interesting indicator that re-sales to date showed average price growth of 16% per annum”.
Lara Haddock, sales manager at Battersea Place said: “Apartments at Battersea Place retirement village are always in high demand. Many apartments attract fierce competition and will go to best and final offer. We hold a waiting list for all would-be buyers looking to buy a one, two or three bedroom apartment, many of whom are downsizing from generous properties in London.”
Data released from a major study conducted by leading real estate company, JLL, shows retirement housing with care facilities perform in line with the UK House Price Index overall and 83% of resales in 2019 increased in price. There is every reason to believe this upward trend will continue and this underlines that the housing with care sector performs better than the traditional house builder retirement product.Nigel Sibley explains, “As the UK demographic continues to change, it will be increasingly important to understand localised and regional trends as the market matures.”
“We anticipate further growth at the higher end of the market. There is a substantial under supply of units within the mid and upper market levels. By 2066, one in four of the population will be aged 65 or over and in course of the next 30 years we envisage a high demand from the next generation of retirees who are even more affluent.”
RICS calculates that the introduction of a viable retirement living market could release as many as 2.6 million houses back into the mainstream housing market, equating to ten years above the proposed house building target.
Chief executive, Nigel Sibley concludes: “There needs to be recognition of the positive impact that these communities have on the NHS. Our industry has documented evidence of how much quicker people are discharged from hospital if they live in a retirement village, rather than in an independent property. There are fewer trips and falls for those living in specially built retirement developments; there is also a lesser burden on social care.
Furthermore, loneliness can be a chronic issue affecting both the individual and the family and living in a retirement community can greatly mitigate this problem”.