|Institutional investors spent £1.4bn in the UK seniors housing market last year, according to the latest analysis from Knight Frank.
Back in 2020, Advantage wrote about how demand for retirement communities was growing and the latest data reflects the significance, and growth, of this sector.
A record-breaking year for investment into the UK seniors housing market
According to Knight Frank, new entrants, the growth of rental and strong fundamentals drove record levels of investment into the UK seniors housing market last year.
They add that 2021 was another record-breaking year for investment into the UK seniors housing market with institutional investors spending £1.4 billion in the sector last year. Annual spend was up 2.2% on the £1.3 billion spent in 2020, which was the previous record.
Investors benefited from a ‘far more active market’ in 2021
The importance of housing for older people
In January, a report from the House of Lords’ Built Environment Committee suggested that specialist seniors housing could be one part of the solution to the housing crisis, noting that to date, “little progress has been made on housing for the elderly”.
Analysis of development data shows that the supply of seniors housing is increasing – driven by private sector investment – albeit gradually.
Lack of suitable retirement housing is a barrier to downsizing
Earlier this year, Housing Today reported that retirement housing developer McCarthy Stone, in research produced with Yougov, said an estimated 4.3 million older people would consider moving from their property and around three million said they will need to downsize.
The poll found that the lack of suitable accommodation was a barrier to moving with one in three respondents calling for the UK to prioritise the development of more retirement housing.
Advantage’s view: Those with an interest in the property and construction sectors have been suggesting for years that much more consideration should be given to the needs of older buyers and renters. And the House of Lords’ Built Environment Committee’s suggestion that specialist seniors housing could be one part of the solution to the housing crisis shows just how far-reaching the impact of investment in this part of the housing market could be. Following what Knight Frank describes as a record-breaking year for the UK seniors housing market, 2022 looks set to be another busy year for this sector, bringing potential benefits to the property market as a whole.
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