The safety and security provided by retirement living during the pandemic – which has killed nearly 45,000 Britons – appears to be driving new demand for village units in the UK, according to a new survey of operators.
85% of organisations surveyed by the Associated Retirement Community Operators (ARCO) say that sales and lettings in the last month were higher than in the same period in 2019, while 55% of respondents report that sales and lettings were at least 30% higher than in 2019.
ARCO represents 27 private and Not For Profit village operators – around 50% of the UK’s village sector.
65% of operators said that the most common drivers of this increase were a desire for more company and social interaction, with 65% customers realising that the houses they were previously living in were not suitable anymore.
60% of operators also indicated that demand was driven by a desire to access a support network ahead of another period of lockdown.
The UK recorded almost 20,000 new coronavirus cases on Sunday as the country moved to a three-tier COVID alert system last week that forced many areas back under lockdown restrictions.
Calls for Government to encourage development of ‘Housing with Care’
ARCO is now calling on the Government to create a Housing-with-Care Task Force to help eliminate barriers to the expansion of the sector.
UK’s retirement living sector is still relatively small at less than 1% penetration along over-65s compared to the US, Australia and New Zealand which is closer to 5 to 6%.
Michael Voges, Executive Director of ARCO, said:
“These figures confirm a trend our members have been observing for a long time: there is a huge gap in the UK market for aspirational living options combining both social interaction and optional support services. An ever-growing number of older people are reviewing their housing, support and care needs in the face of the current pandemic, and are seeking out Retirement Communities that enable them to live independently for as long as possible.”
Our own DCM research has shown similar interest here in retirement living for the same reasons – but providers need to capitalise on this newfound awareness of its advantages.
Should Australian village and land lease operators also be looking to lobby the Government for more incentives for retirees to move into a retirement community?
