WHY A SOLID
RESIDENTIAL PLAN IS IMPORTANT FOR THE UK'S AGEING POPULATION
Fact: In the UK, people are living longer.
According to data from the Office of National Statistics (ONS), within the next
50 years over 25% of the population will be classed as senior citizens. What’s
more, life expectancy is set to rise too, with men living until they’re almost
87 and women until they’re nearly 89.
Now, with the current care home infrastructure
already creaking under the weight of demand, the later-living sector is going
to need to be significantly enhanced in order for this demand to be met. This
is going to require a solid residential plan to be created, and soon.
PRIORITISING RESIDENT NEEDS
What needs to be put into place are plans for
developments that put the needs of the increasing number of seniors front and
centre, with every decision being made with this in mind. Rather than being
mere homes for them to occupy, operators should respond to the lifestyle
requirements of residents, with independence-focused solutions like care
villages and retirement living being utilised.
Care in the community is another option, but
it’s not suitable for everyone and it doesn’t offer the same social benefits
that retirement accommodation does. To achieve this on a wide-scale basis and
provide sufficient specialist housing options, a significant investment will be
needed, with more added on an annual basis.
LOCAL AUTHORITIES WILL NEED TO BE DECISIVE
The importance of local authority action
cannot be underestimated in this effort, as they need to feedback the needs of
people in their district. To date, this response has been mixed, which clearly
needs to change, but once these requirements have been established, the
relevant resources can be allocated through the plan development process.
Land allocation is also a big issue in this
regard, with all developers vying for the same spots. This can lead to care
development delays and increased costs, so authorities must consult with the
care sector to understand what level of provisions need to be made - as not
doing so simply isn’t an option. The figure? Well, to keep pace, it’s believed
that 30,000 new properties are required annually.
How far away is that? Worryingly, a mere 8,000 were constructed in the UK in
2019 prior to the outbreak of Covid-19 and whilst this might cost a lot to
achieve the required numbers, it would result in around £2 billion of extra
economic activity occurring in towns across the country - so it’s not without
its financial benefits.
A CRUCIAL PERIOD INFLUENCED BY A CLEAR, DIRECT PLAN
The last 18 months or so have been extremely
challenging, however, the crisis has been managed effectively through the
employment of a mixture of solutions. The situation is one that will need to
continue to be managed as effectively, as the problem is only going to get
worse over time if insufficient focus is placed upon it.
This ongoing, increasing demand is good news
of course, for the care home investment sector, with a dynamic landscape now
representing the norm. A well-planned strategy will create many opportunities
for the savvy investor, but the ball is currently well and truly in the court
of local government and it’s just a matter of seeing how decisive the action
is.
