There's a massive market out there for new homes - and we’re not talking about first-time buyers.
Retired people form the country’s fastest growing demographic group and with them comes a new demand for a particular type of housing.
Unfortunately, the UK’s housing shortfall includes a big gap in future housing provision for older people.
With the number of over 60s set to reach 20 million by the 2030s, there are calls for action to be taken now over ‘woefully inadequate’ provision.
A survey by think tank Demos, supported by the Home Builders Federation, found that while 3.5 million people aged over 60 were interested in buying a retirement home, just 100,000 were for sale. If all those who wanted to were all able to move, more than three million homes would be freed onto the housing market, the study said.
The report adds that releasing the equity held by older people could ease the poverty and financial problems many face, which would increase their spending power and boost the economy.
Calls for action were made by trade association, ARCO (the Associated Retirement Community Operators), which represents more than 50% of the UK retirement community market.
Chairman Jon Gooding said: “To keep pace with the demand for good homes for older people we must push for more growth in specialist housing options that enable them to lead active and fulfilled lives for as long as possible.”
ARCO wants to see 5% of older people living in retirement communities by 2030 and has called on planning departments to adopt a more consistent and positive approach to dealing with applications for specialist housing for older people.
ARCO has called for a suspension of stamp duty on purchases of properties in retirement communities, as well as an increase in Homes and Communities Agency funding for the construction of specialist retirement properties.
Demos added weight to calls for action after its report found that 33% of over 60s wanted to down size if suitable retirement homes were available and urged the Government to get behind the drive for more retirement properties.
This has been recognised by property specialists for a while, not least Knight Frank who, in a previous housing retirement report noted: "There are many options, but there is a real opportunity for purpose-built retirement housing, especially the retirement village concept, as long as developers get it right.
“The over 60s live longer, healthier and more active lives which has a dramatic impact on their requirements. Design should acknowledge that their social habits reflect those of the wider population in that their social networks are spread across the country – with the consequent need to accommodate visitors. Also that many still work; such as part-time consultancy based at home, and therefore require extra space.
“In Australia, Scandinavia, the US and New Zealand, retirement villages have been popular for decades but there are still relatively few in the UK.
“As the concept becomes better understood, it can only imply strong prospects for growth.”