39% Increase In Senior Living Property Market By 2023
With the number of people over the age of 65 living in the UK set to increase by 20% in the next eight years, it is unsurprising that developers are diverting their attention and resources into the private senior living sector.
A recent survey by Knight Frank has predicted that the value of the senior living property market is set to soar from £39.6 billion in 2019 to over £55 billion by 2023.
When surveyed about their final home move, 56% of those over the age of 65 were unanimous and adamant that location was their main priority.
The results then differed between age demographics for other key motivators prompting a final move. People aged between 65 and 74 were looking to move closer to friends and family whilst the over 75-year-olds were focused on being close to transport links.
Overall, 37% of people over the age of 65 found the prospect of living in a senior living scheme extremely attractive; this figure rose to 41% of people over the age of 74.
As more developers look to build appropriate accommodation for elderly residents, it is clear that developers will be looking to utilise planned land close to town centres. The report found that 75% of respondents considered the property’s close proximity to a city centre fairly to very important in their decision making process.
Tom Scaife, Head of Senior Living at Knight Frank, said:
“These findings highlight clear opportunities for senior living developers to design schemes that appeal to this growing sector. In fact, 37% of respondents to the survey said they found the prospect of living in a senior living scheme attractive, representing huge potential for market growth.
“Still a nascent market, there are challenges to overcome in senior living with access to data among the most important. Further hurdles, which the industry is already taking steps to overcome, centre on communicating the social and economic benefits of senior living to local communities.
“Current Government support, the continuation of uncapped ground rents in the sector, for example, needs to continue and expand. A uniform plan for meeting the housing needs of our aging population is also required. This should include clarity on affordable housing, local authority financial saving through provision of care within seniors housing, and the release of local family housing back to the market via downsizers moving into seniors housing.”
Will developers be able to keep up with the demand of this older demographic’s needs in the next decade?