The concept of housing specifically aimed at older people has many benefits. Improved quality of life and releasing larger, underutilised homes into the market for younger generations are just two. With numbers in the 65 plus sector of the population only expected to grow, senior living is an expanding asset class.
We asked Dr Margarethe Theseira to look further into the demographics and economics around this asset class, into new and emerging models and into further changes required to support this expanding market.
Significant shifts in population distribution will shape the emerging asset class of senior living. By 2030, 20% of people in the UK will be over 65. In particular, for the 65-75 age bracket, they will have an anticipated average of 10.6 years of healthy living and will also stay in work longer than their predecessors. Evolving models are becoming more sensitive to what these healthy senior need and want, including the greater provision of accommodation in town and city centres which offer greater opportunities for employment.
Around 6,000 senior living units came to market last year, but estimates suggest that there is an annual demand for three to five times higher than that. In 2017/2018 three quarters of older households owned their homes outright. There is the potential for this group to release equity from their property by moving into smaller, more convenient accommodation, but many feel there current options are inadequate.
The report was researched by Dr Margarethe Theseira, an independent consultant specialising in urban economics. She has extensive experience in providing investment, policy and strategy advice to clients in the private, public and charity sectors. She spent over a decade managing the economics and intelligence functions for the Mayor of London and Greater London Authority Group. She served as the Chief Adviser to the London Fairness Commission, is a Principal Fellow at University College London and holds a PhD in modelling from Cranford University.
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