Knight Frank has released its latest retirement housing report, revealing that the private retirement market is estimated to reach a value of £44bn by 2022, reflecting a 50% increase. The number of private retirement living units is also forecast to increase by almost 30% in the same timeframe.
The report, Retirement Living comes of age, highlights how investment into the UK later living market is at an unprecedented level, with growth driven by private sector development and the economic attraction of this maturing market.
There are currently more than 720,000 retirement units in the UK, 75% of which are social housing. However the market is evolving from predominantly publicly funded stock, with private development accounting for 54% of all new units delivered annually since 2000. Looking ahead to 2022, this is set to rise to 78% of total delivery.
The market has evolved into two distinct types; later living with limited on-site care (70% of the market) and Housing with Care/Assisted Living with increased management and amenities (30%). Of those aged 65+ in the UK, only 0.5% are residing in housing with care schemes. This hugely lags behind the mature markets in the USA, Australia and New Zealand, which all exceed 5%.