An ageing population will have a significant impact on UK residential property market, report shows
UK retirement property sector.
PropertyWire.co.uk, Thursday, 04 March 2010
An explosion of grey hair has significant implications for the future of retirement properties in the UK and the wider residential real estate market, it is claimed.
Retired people form the country’s fastest growing demographic group and older households will represent half of all household growth between now and 2026, according to the Retirement Housing Report 2010 from consultants Knight Frank.
It points out that it is important the development, construction and care industries recognise the trend as thinking and practice in the UK retirement sector has long lagged behind innovation in Australia, Scandinavia, the US and New Zealand.
‘Retirement villages have been popular for decades in these countries. However in the UK, there are still relatively few implying there are strong prospects for growth as the concept becomes better understood,’ said Liam Bailey, head of residential research at Knight Frank.
‘The growth in popularity of retirement villages stems, fairly obviously, from our increasingly ageing population and the growing assets its holds, but also from a growing tendency for older people to place a positive emphasis on the need for security, socialising opportunities and convenience. The need to release equity through a downsizing move may also impel a greater shift towards specialised retirement housing,’ he added.
In the UK, the majority of the over 65s, some 89%, live in mainstream housing. Just 6%, that is some 500,000 households, live in specialist retirement housing and 5%, 400,000, live in institutions for example residential care or nursing care accommodation.
