Global property consultancy Knight Frank has reported that current stock levels of retirement housing and projected demographic changes highlight a critical undersupply of age-appropriate homes.

In its latest report, The Case for Retirement Housing, the firm assesses the drivers of this imminent crisis. There are currently 11.8m people in the UK over the age of 65, which is forecast to rise by 20% over the next decade. This means that the time spent in ‘retirement’ will also lengthen, underpinning the crucial need for retirement housing.

The gap between the potential pool of demand and current supply is stark. Present stock (from age-restricted over-55s housing to housing with care) comprises 725,000 homes, which equates to just 2.6% of the total housing stock in the UK.

The report found that one-in-four over-55s would consider downsizing; or moving into some sort of retirement accommodation. If this assumption is applied to the over-65s, with 25% choosing retirement housing over the next decade, there is potential demand from an additional 582,283 individuals.

Tom Scaife, head of retirement housing at Knight Frank commented: “The forecast growth in the UK’s older population, coupled with a need for housing that can free up family homes and help alleviate the stress on the NHS and social services, means that the case for retirement housing delivered at scale has never been stronger.”