Retirement home shortage blocking housing market

Thursday, 12 January 2012

A shortage of retirement homes will block the housing market - piling immense pressure on entry level properties, experts have warned.

Over the past six years, the average age of a first time buyer has increased from 33 to 42 and is unlikely to return to previous levels.

The government's housing strategy is specially designed to benefit first time buyers and young families - but also includes measures to relieve the housing crisis affecting the elderly.

It includes a commitment to increase specialist housing for those in later life, such as general-needs retirement housing, sheltered and extra care accommodation.

Owner occupied retirement housing is now a housing option, with pensioners able to enjoy independent living with various levels of care and support.

Currently, 70 per cent of British older people own their own home - making this form of accommodation attractive.

Just two per cent of the UK's housing stock is classified as specialist housing for older people - compared to nine per cent in the US.

Paul Teverson, head of public affairs at McCarthy & Stone, a developer of retirement housing said there was not enough specialist housing to meet demand.

He added: "Our research shows that for every housing chain created by an older person downsizing into specialist accommodation (and freeing up a family home), a first time buyer enters the housing market six moves later.

"Specialist housing frees up exactly the type of properties that are so hard to come by - family-sized homes of three or more bedrooms.

"Each specialist dwelling also effectively houses six people: the older couple downsizing and a traditional family moving into the vacated property.

"Without measures to free up family-sized housing, chains are blocked and younger people are forced to rent.

"Of course, mortgage availability is a major issue, but so is housing availability. Without freeing up properties at the top of the ladder, there are no options at the bottom."

He added that the government should focus on specialist accommodation because of the benefits it provides to both residents and first time buyers.

The older population is set to rise from 11 million to 17 million by 2035 - giving even more need for a housing market 'blockage' to be averted.