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News archive - September 2016

Care home market booms in 2016

Care home market booms in 2016

An all-party parliamentary group is calling for a new focus on construction, switching from first-time buyers to providing more purpose-built homes for older people.

In the report, Housing our Ageing Population: Positive Ideas report, launched in June, Lord Best said: “The Government must move away from concentrating exclusively on support to young first-time buyers. The UK needs ‘later homes’ too.”

His comments are expected to pave the way for a new generation of supported living schemes up and down the country.

“It gets multiple benefits from supporting older people to enjoy better health and wellbeing in new homes - from saving NHS and social care spending, and from freeing up family homes for the next generation,” says the report.

And it sets out a number of positive ideas for ways in which Government policy and actions by investors and care home operators can make a difference. Recommendations include ensuring local authorities give necessary priority to older people’s housing needs in local development plans; getting developers to sign up to relevant consumer codes; and moving forward with introducing ‘care-ready’ features such as new connected homes technologies in care facilities.

“If our report helps get us to that elusive tipping point - when moving to an easy-to-manage, high-quality new home is the natural thing to do - we will all, young and old, be the winners,” added Lord Best.

The lobby comes after a second report was released by market analyst, Barbour ABI, highlighting consistency in the value of care home projects over the last five years.

The sector currently makes up 13% of the residential construction market and is expected to continue to grow to meet the demand of a rapidly-ageing population.

Having reached new highs in 2015, forecasts predict increasing levels of activity well into the next year, with the value of care contracts set to reach £2.3billion for 2016 alone.

The biggest opportunities this year for development are in the South West, with the West Midlands also enjoying huge investment in older people’s care facilities.

Key projects include Kidbrooke Village in London; Longbridge Extra Care Retirement Village near Birmingham; and Richmond Care Village in Aston on Trent, Derbyshire.

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