UK Senior Living Rental Market
The senior rental market continues to see investment with growth in the market to increase dramatically by 2024 in a recent analysis by Knight Frank. The analysis is expecting to a 30% increase in private senior living units within the next five years with an expected delivery of 50,000 new units from private sales. Expected growth is for locations in the South East, South West and Midlands.
The London senior rental market is forecasting the number of units to be available to be priced £1,000 per sq foot to increase from 300 to 2,000 by the year end of 2023.
Current inventory for rental property for seniors is now at 4,000 for the UK with 93% being in wider-for-sale schemes with 7% for purpose-built rentals.
The private rental market that the valuations for the senior living market to climb £1.3 billion in 2019 and by 2023 to be at £3.4 billion mainly from private equity and institutional investors looking for alternative markets.
Commenting in the Knight Frank report Tom Scaife, Head of Senior Living :
“The rental market for senior living is very likely to increase in line with the changing tenure trends across the UK’s wider housing market. As well as increased interest in purpose-built rental, for-sale operators are also increasing their allocation of private rented units pepper potted in their schemes.”
Phil Baylliss, CEO off Later Living at Legal & Genera:
“With clear social benefits - such as a 50% reduction in GP visits and 40% decrease in NHS spend – the senior living sector has the ability to transform the way that we age. The predicted 30% step up in supply over the next five years, identified by Knight Frank in this latest report,is therefore significant."
“The increase in rental property for this demographic is also promising as it is becomes
increasingly important to offer choice and flexibility in all areas of the housing market."
"Whilst all good news, as a country, we still need to do more. Where we live drives material health outcomes and can significantly improve the way we age. Clear long term policy from Government, which can level the playing field between retirement operators and traditional house builders, will be vital to continuing to attract investment.”