Ageing population signals Legal & General's entrance into retirement housing
Posted on 4/08/2017 by
UK property investor Legal & General has signalled its push into the UK’s retirement housing sector with the launch of its new later living accommodation brand.
Inspired Villages Group, which has been formed out of English Care Villages, will focus on developing new later life homes for the UK market and L&G has ambitions that the company will become one of the leading operators in the space within the next five years.
With the UK’s ageing population the demand for retirement homes is only going to increase in the coming years, with a shortfall of around 100,000 homes every year while L&G’s own research has estimated there are around 3.3m so-called ‘last time buyers’ who are looking for suitably sized homes.
Phil Bayliss, Head of Later Living at Legal & General Capital, commented: “It is widely recognised that the UK is underprepared to support its ageing population.
“Over 3m over 65s are looking to downsize and only 7,000 housing with care properties are being built each year.
“The UK suffers from a chronic undersupply of age-specific housing as well as spiralling health and social care spend. We believe our long term capital can deliver significant housing, health and wellbeing benefits for those in later life.”
The new venture, which has been formed following the acquisition of the assets of two joint ventures (JV) between English Care Villages and Places for People totalling around £40m, is targeting 3,000 UK homes over the new five years.
Utilising L&G’s financial backing, Inspired Villages will acquire and deliver ‘several sites a year’ across the UK modeled in the retirement village style akin to their current schemes in Warwick and Cheshire.
Homes will start from around £250k while the village will feature landscaped gardens, restaurants, gym, social activities and as well as access to appropriate care.