The UK’s grey explosion has definite implications for the UK’s future retirement properties, as well as the residential real estate market in general, a new report has claimed.  Retired people from the UK’s most rapidly-expanding demographic, as well as older households will, between now and the year 2026, come to stand for half of all household growth. The numbers come from the 2010 Retirement Housing Report delivered by UK properties consultants, Knight Frank.

The report has highlighted the importance of the need for the construction, development and care industries to become aware of this growing trend, and further pointed out that action in the UK retirement sector has historically been a long way behind thinking and practise in countries such as the US, Australia and New Zealand. Liam Bailey, the head of research at Knight Frank, stated that although retirement villages have long been popular in the UK, there are still few in the UK, which means that there are decent growth prospects for the concepts.

Mr Bailey also said that the growth in popularity of retirement villages ’stems, firstly, from the UK’s ageing population. Also, there is a growing tendency among older people to place an importance of the need for security, as well as opportunities to socialise.’ He also stated that the trend to release equity through downsizing may also result in a great move towards specialised retirement housing. In terms of statistics, the majority of over 65s in the UK (around 89%), live in mainstream housing. Compared to this, only 6% (around 500,000 households) are currently living in retirement housing with only 5% (perhaps 400,000) living in either residential care or nursing care.

Mr Bailey went on to explain that the majority of retired people live as owner occupiers in mainstream housing, whilst most people decide to take up places in retirement homes as a result of bereavement, poor health or the need to be close to family. He went on to identify the great opportunities in the retirement housing market for modern, purpose-built housing-particularly where the retirement village idea is concerned. Housing requirements will continue to grow due to the fact that people over the age of 60 are healthier, more active and are living longer than ever. Also, with many older people continuing to work, such new retirement villages must take such needs into account, as well as more advanced recreational facilities as older people demand more from their golden years. Such retirement villages also provide employment, which can also have a beneficial effect on nearby communities. They may also help stimulate further interest in buy-to-let housing specifically for this purpose and help encourage good mortgage rates on fixed-rate mortgages for key areas – all beneficial to the local economy as a whole.