More new retirement homes needed

Various professionals working in the retirement housing sector, such as Peter Girling, chairman of Girlings Retirement Rentals, argues that more new retirement homes are needed if the Government's ‘downsizing' plan is to work.

Last year housing minister Grant Shapps announced that local councils should help pensioners downsize into more suitable accommodation to free up much needed family homes. Under the proposals, local authorities would take responsibility for maintaining and renting the vacated properties at affordable prices, handing any profit back to the elderly owner.

The Government believes the proposal would provide support for the elderly to move without having to sell their homes at a time when there is a shortage of affordable housing for young families.
But Mr Girling, like many industry professionals, argues that there are simply not enough new retirement homes being built to meet growing demand.

It is estimated that about 80% of elderly people in the UK are homeowners and occupy many of these sought after family homes - property worth an estimated £3tn. Many of their properties are under occupied. According to research from the Intergenerational Foundation last year, there are 25m vacant bedrooms in England.

Girling said: "It stands to reason then, that if Government can incentivise elderly people to downsize, they would be freeing up this valuable space for family. But - here lies the dilemma - how they will do this?

"Firstly, if older people are going to downsize, it must be because they want to not because they are being pressurised. Secondly, there is a chronic shortage of suitable, purpose built retirement property in the UK for sale or rent - so a severe lack of the ‘more appropriate' accommodation to which Mr Shapps refers.

"So, whilst the scheme is undoubtedly a great idea and could put an end to the UK's property problem it will only be workable if this problem is solved. We now need concrete plans on how government intends to deliver the increase in retirement accommodation. This is vital and without them, its plan simply won't work."