Current retirement housing can accommodate just 5%, warns think tank

There are currently around 515,000 specialist retirement and extra care homes in England.

ILC-UK research shows that although 90% of 65-79 year olds live in under occupied houses, there could be a retirement housing gap of 160,000 houses by 2030 if if current trends continue. By 2050, the gap could grow to 376,000.

Responding to Housing Minister Gavin Barwell’s suggestion that making it easier for older people to downsize could help solve the housing crisis, the ILC-UK has urged Government to ensure thousands of new retirement properties are built as a matter of urgency.

ILC-UK has also called on the Government to introduce a duty on Local Authorities to assess the needs of their older populations when making housing plans, and ensure that these needs are met before plans are put in place.

The ILC-UK also found that there are several reasons why older people do not downsize. One is a supply problem; the lack of suitable housing on the market. Another is financial considerations in terms of moving; stamp duty can be a major barrier.

Baroness Sally Greengross, Chief Executive, ILC-UK, said: "The Housing Minister is right to recognise that meeting the needs of last time buyers and encouraging downsizing is crucial to addressing the housing crisis. Downsizing can also ensure that older people live in properties that allow them to stay in their own homes for longer, and can release equity that can be used to fund social care in later live.

"However, unless Government acts to encourage local authorities and developers to meet the needs of last time buyers, there could be a retirement housing gap of 160,000 retirement homes by 2030. If current trends continue, the gap could grow to 376,000 homes by 2050.

"Local Authorities must have a duty to assess the needs of their older population when making housing plans, and ensure that these needs are met before plans are put in place.

"Government should also consider what changes can be made to Stamp Duty to remove the perceived financial barrier of downsizing."