Propertymark has long been involved in the national conversation about improving accessible later-living housing. Just 2% of the country’s housing stock has been designed with pensioners in mind, and with the number of over 85’s in Britain set to double by the year 2030, boosting the delivery of specialist retirement housing would free up homes currently under occupied by older people.
Recognising diversity
The report describes a need to incentivise a range of options for later living homes which can be scaled up to meet the needs of individuals, enhance their wellbeing and create inclusive communities. This echoes the evidence Propertymark provided in our consultation response, where we called for increased awareness of the need for homes across different tenures to suit the changing needs of the ageing population.
Shaping the future of accessible housing for older people
In less than 20 years, one in four people will be over 65, and with no joined-up strategy in England to ensure there will be enough accessible housing, the UK Government has set up an Older People’s Housing Taskforce to examine the issues faced – particularly for lower and middle incomes, as well as the need for older people to move into more appropriate or specialist homes.
Incentivising proactive moves
Evidence suggests that around a third of people aged 65 and over would consider moving house, especially if they have a larger property than they need. However, the number going ahead with a move drops sharply between the ages of 65 and 80, after which most moves are into care homes.
The fact that downsizing does not always stack up financially is a key deterrent, and Propertymark is pleased to see the Taskforce agree on the value of adopting incentives for last-time buyers, including stamp duty reform for over 55-year-olds, which we also shared with the Chancellor of the Exchequer in our recent budget representation.
Autumn Budget 2024: strengthening housing markets whilst boosting energy efficiency
Propertymark has prepared deliverable and achievable spending commitments that will increase the supply of privately rented accommodation, boost owner-occupation, and support landlords and homeowners decarbonise properties. Our proposals include Stamp Duty Land Tax (SDLT) reform to encourage last-time buyers to downsize, reversing Section 24 of the Finance Act, and interest-free energy-efficiency loans.
Fair and transparent costs
Also included in the report was a recommendation for further regulation of event fees (also known as exit fees, transfer fees, deferred management charges, or deferred fees), which Propertymark has previously campaigned for. Many leases in retirement communities require the owner to pay these fees at the point of ‘events’ such as sale, sub-letting or change of occupancy.
Event fees can make properties more affordable for residents by deferring part of the payment for services until the property is sold, however, a 2017 Law Commission report found that there were major problems with event fees, including unnecessary complexity and insufficient information given to consumers. Propertymark supports introducing a code of practice and disclosure document for fees in specialist retirement developments and has urged the UK Government to implement the Law Commission’s recommendations.
Propertymark has also initiated conversations with leading academics over the feasibility of a rating scheme for homes and communities to assess their age-friendliness on a simple scale, and has called for Propertymark members to be considered for a pilot scheme.
We welcome the Older People’s Housing Taskforce report and are delighted to see that the taskforce shares our policy positions on the need to improve supply across all tenures for older people. This is key as the proportion of people aged 50 to 64 who privately rent has nearly doubled over the past decade.
Propertymark will continue our conversations on developing a rating scheme to assess the appropriateness of older people’s housing, and we look forward to continuing to engage with officials, Ministers and other stakeholders to ensure there are more housing options for older people and future generations.
