:
UK: At Bisnow’s recent Later Living Conference, the potential of rentals, particularly in the mid-market segment, was the hot topic of conversation.
The event, held at Cavendish Venues in London, brought together developers, operators, investors and service providers to deliver a snapshot in the UK later living sector, as well as a look to the future.
The mid-market and the rental market were both cited as the sector’s main areas for potential growth. Kevin Beirne, director, retirement communities, at Octopus Real Estate, said: “Mid-market sales and rentals will attract the majority of future investment in to the space.”
Paul Teverson, chair of the Retirement Housing Group, a membership organisation representing the whole of the UK’s retirement housing sector, said: “The private rental model is very attractive, and very flexible – the resident doesn’t have to sell their property to move in, and they can then rent out their family home if they wish. The rent-to-rent model is very attractive if it can be done well, a definite potential growth area. The struggling housing market is also accelerating the shift towards rentals. McCarthy & Stone now has around 2,000 rental units – that’s a real cultural change. Around a third of all RHG member transactions are now in the rental market, it’s a big part of the future of the retirement sector.”
Other topics of conversation included the new National Planning Policy Framework (NPPF), which was hailed as an improvement on the previous version – it contains four mentions of older people.
PM Andy Burnham’s plans for a social care shake-up could be a major shift for the entire later living segment, including care homes and social senior housing.
And the Older People’s Housing Taskforce report was described by Teverson as “a brilliant roadmap with some great recommendations”. “We now need a formal response to the report from the Government, which is currently sitting on it. The government also needs to create the right policy landscape to implement the report’s recommendations,” he said.
A Stamp Duty exemption for mid-market retirement property would be a popular move in the sector, as it would also free up the whole housing chain, which will benefit young families as well as those in the later living demographic.
To read the Older People’s Housing Taskforce report, click here.
