A new report from CBRE says investment into mid-market senior living developments is needed to address the shortage of facilities across the UK.
CBRE’s first senior living survey analysed responses from over 2,000 UK residents aged 55 and over, and found that 62% of respondents are open to moving into a senior living scheme in the future.
24% of respondents are considering a move in the next five years, with demand highest in Edinburgh, Birmingham, London and Southampton. However, supply is ‘notably constrained’ in these cities.
At UK level, CBRE estimates that there is an undersupply of 614,000 senior living units.
Kathryn Bennett, head of operational real estate for CBRE Scotland, said, “Historically, senior living schemes have targeted prospective residents who live in more affluent areas of the UK due to the high costs of land and construction. In Scotland, we haven’t yet seen dedicated senior living development at any scale, however, with growing demand due to an ageing population, improved medical care and increased awareness around mental wellbeing and the impacts of loneliness in later life, there is a very clear demand pool for dedicated senior living accommodation in an affluent city like Edinburgh – the challenge will be unlocking suitable sites.”
The report also found that 63% of respondents in the 75+ bracket have yet to downsize since retirement, highlighting a potential cohort for senior living schemes. Respondents across a number of cities said they would consider renting in a senior living scheme to free up equity from the sale of their house.
Kathryn Bennett added, “It’s evident that there is a need to amplify the choice and quality of housing available to this cohort of the population. Developers can address this with increased tenures, including rental and affordable tenure, unlocking potential for a more diverse, accessible offering.”
