THE UK SENIOR LIVING MARKET is undergoing rapid growth, underpinned by demographic shifts that are increasing demand for a wider array of specialist housing to suit the changing needs of older purchasers.
Buying a home for retirement is an increasingly popular choice for those who want to make life easier with a smaller property to run and be among people of a similar mindset.
Rising life expectancy has meant that people are healthier and may not need as much support, or only need care much later in life.
AGEING POPULATION
The number of properties being built specially for retired people is set to increase significantly during 2022 as the demand for this kind of home rises in the UK due to an ageing population, new research suggests [1].
The research shows that 16 retirees who want to downsize are currently chasing each existing private retirement property, emphasising the dire shortage of homes for retired people.
The retirement housing report says that the private retirement property market will have a value of £44 billion by 2022, up by 50% from its 2020 value.
BUYING A PROPERTY
More importantly, it will have delivered an increase of almost 30% on the number of available properties for sale or rent. Retirement accommodation is ideal for some people who are looking for an easy life and the option of care being on tap when they might need it.
Buying a property in either a retirement village or a retirement housing development will be new for most people and there is much to learn before you start looking.
10 THINGS YOU NEED TO KNOW WHEN BUYING INTO RETIREMENT LIVING
- RETIREMENT LIVING OR VILLAGE?
There are broadly two types of retirement living options. Retirement homes offer independent living in affordable properties, accompanied by limited provisions and lower running costs. Retirement villages offer the same independence, but within a large community setting that has a ready-made social scene plus a whole load of add-ons, depending on the village you choose. Both offer varying degrees of care. - EXPLORE FACILITIES
To reflect the growing number of older people who are increasingly healthy and active, the facilities in retirement villages range from wine-tastings, bridge, yoga classes and good-quality restaurants, to gyms and swimming pools as well as allotment gardening. Housing can also offer a hub of activities, though more limited to what the building can host. - LOCATION IS VITAL
The idea of a country postcode may seem great. But when you realise getting out and about could become more difficult and any hospital appointments when you aren’t feeling well are miles away, you might feel differently. Try to find somewhere near friends and family and where there is good local transport.
Retirement villages are typically close to towns and some developments offer shuttle services to the local shops and amenities. - WHAT ABOUT CARE PROVISIONS?
The level of care will differ between developments. Some places come with a simple warden service a few days a week, while others have full round-the clock care. Some have a mix-and-match scenario so you can take on more care as you need it. - ASK ABOUT CHARGES
Get a clear idea on costs at the outset. A big outlay on retirement village homes is the service charges that cover all the facilities. A service charge is made per property to cover expenses such as an emergency 24-hour call service to the on-site care team, ground maintenance, external property maintenance, a mini-bus service to and from shops and events, buildings insurance, access to all activities and events, window cleaning, administration and security. They are typically lower for retirement housing developments. - OFF-PLAN OPTIONS
Buying a property before a development is finished is possible and worthwhile for the most in-demand locations. Keep an eye out in your preferred area for development plans. - PAY A VISIT
Visit the developments under consideration in person when you have a shortlist. Many places offer potential buyers the chance to meet their neighbours, which can give a better idea of the social life that lies ahead. Taster Days are one way to get a real feel for a retirement village. You usually get to sample the facilities and meet the residents and the staff, as well as having questions answered by their expert adviser. - CONSIDER RESALE
People buy their homes rather than pay for rooms and care by the week, as in a residential home. Considering the resale aspect is important for you and your family. As with any other type of property, location is key. Exit fees are sometimes applied when you come to sell, known as a ‘deferred management charge’. - UPDATE YOUR WILL
Don’t forget that any big change in circumstances will give rise to the need to revisit your Will. A new property might prompt you to look at a number of measures to avoid or cut Inheritance Tax. - KNOW YOUR OPTIONS
If you’d rather keep the family home, equity release schemes could offer a range of options that may allow you to borrow into retirement and draw capital or raise income from your home without having to move. More lenders than ever now offer mortgages for pensioners, and the demand for later life mortgages is only going to grow.
Source data: [1] Knight Frank Senior Living Annual Review 2020.
