Commercial property investors should consider buying housing for seniors, as this sector is gaining popularity for its huge financial potential.
Knight Frank has revealed thanks to the ageing population of the UK, due to people living longer, there is becoming a shortage in the supply of housing for seniors.
It noted that the number of people over 65 is set to exceed 14 million by 2027, rising by ten per cent on today’s number. In fact, 25 per cent of the population will be older than their mid-60s by 2037.
Simultaneously, this group of people generally have substantial wealth, with many having paid off their mortgages and no longer having any dependents.
Therefore, investors are recognising the gap in the market for age-appropriate housing, and there was already a 12 per cent increase in new seniors housing units last year compared with 2020.
In fact, almost 80,000 of these units have been built since 2012, and Knight Frank predicts the number will continue to grow by eight per cent over the next five years.
More than £1.4 billion was invested in the UK seniors housing market in 2021, and as much as £662 million has already been spent on this area of commercial property during the first half of 2022, a rise of 47 per cent on the previous year’s figures at the same point.
Investors are clearly seeing the need to deliver senior housing, and the potential to capitalise on this thanks to the slow action of councils. Indeed, just 23.3 per cent of local authorities have adopted plans to address allocation of senior housing units.
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