Senior housing crunch looms as population ages

Housing for the elderly is not being built fast enough to meet demand from the UK's rapidly ageing population despite surging investment, new research has warned.

Knight Frank expects the number of retirement properties to rise by 10pc over the next five years to a total of 800,000 as major investment firms pump in cash.

But the population is ageing quickly, with one in four people set to be over the age of 65  by 2037. The availability of senior housing will fall in real terms as a result.

The estate agency believes that by 2024 there will be 120 senior housing units per 1,000 people aged over 75, a decrease of 12.4pc since 2010.

Lauren Harwood, head of senior living research at Knight Frank, said:  "A step change in new delivery is required if the UK is to reverse the huge imbalance between need and supply, which is only set to increase as people continue to live longer and more of the population enters the 65-plus age bracket.”

Knight Frank said planning policy is holding back the development of homes for seniors, with few councils singling out the market for development.

It follows research by the estate agent which predicted that 6,500 care homes are at risk of closing over the next five years – leading to a potential loss of 140,000 beds.

Housing units with care services attached will account for most of the increase in senior living units over the next five years, with approximately 45,000 units expected to be built.

Retirement housing, built specifically for the over-65s, is expected to rise 5pc to 29,000 units.

Separately, research by the British Property Federation (BPF) shows a surge in the number of new homes built to rent out.

There are now 167,853 build-to-rent homes either built or in planning across the UK, a 22pc increase on last year.

Ian Fletcher, director of real estate policy at the BPF, said: “Our research shows investor confidence in build-to-rent housing continues. 

“The sector will play a key role in supporting the government’s ambitious plans to ‘level up’ the country’s regions and in building a shared recovery."