Housing minister Matthew Pennycook has said the government is “determined to create a more diverse housing market” as it published a report on the needs of older people.
The Older People’s Housing Taskforce report assessed public and private housing for older people, with a focus on the private market for those on middle incomes.
It also looked at the provision of more choice, quality and security of housing for older people.
Pennycook said: “The government recognises the importance of increased supply and improving the housing options for older people in later life, and we will give careful consideration to the many recommendations set out in the report.
“Providing a range of safe, suitable housing for older people in later life helps them live independently, safely and well, for longer. It can enhance the wellbeing of our senior citizens and reduce demand on adult social care services and the National Health Service.”
He added that meeting the needs of older people was part of its housebuilding strategy over the next five years.
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“We are determined to create a more diverse housing market; one that delivers homes quickly and responds to the needs of a range of communities,” Pennycook said.
He said the recent consultations to reform the National Planning Framework, including the delivery of mixed-use sites with housing for specific groups, such as older people.
Pennycook added: “We have also indicated our intention to consider further planning policy changes in the future as we move to produce a more streamlined and accessible suite of policies and we will ensure that considerations around older people’s housing inform our approach.”
The government is also working with the Planning Advisory Service for guidance on how to give more clarity on how planning use classes apply to specialist homes for older people.
It also said the Leasehold and Freehold Reform Act would benefit older people as they were also impacted by the leasehold system.
Lack of awareness around housing options
The Ministry of Housing Communities and Local Government also produced a report on the housing choices older people could afford and wanted.
It found that the older population was set to grow, and their characteristics suggested there was a need for specialist housing, with facilities such as on-site care.
However, the report found that people were unaware of the options available and tended to associate specialist housing with care homes.
It also found that older people preferred to stay in their current homes, while some were willing to move to suitable housing if the circumstances demanded it. Homeowners were more likely to want to stay put.
Further, older people want to live in housing with access to amenities, leisure facilities, and green spaces and be close to friends and family.
A variety of housing needed for older people
A separate independent report, Our Future Homes: Housing that promotes wellbeing and community for an ageing population, suggested more and a variety of housing options were needed.
It found that 30,000 to 50,000 new later living homes were needed each year to meet this, but currently, only around 7,000 a year are built.
It said more housing should be designed for later life, while age-friendly, dementia-inclusive, faith and culture-sensitive communities needed to be developed. This would also require changes to planning policies.
The majority of over-65s also live in mainstream housing and some admitted to “burying their heads” to the options available.
More incentives should be given to increase the supply of suitable homes to make this affordable for those on low and middle incomes.
Alternatives to owner-occupier tenures
The report said although the majority of senior citizens, 74.2%, in England owned their homes outright and 4.4% had a mortgage, there needed to be more options especially as more people are expected to rent into older age.
It said the current tax system discouraged older people from selling their homes, investing the capital and using the yield to rent as the income generated from investments was liable to income tax.
It also said renting was disincentivised because an older person’s primary residence is disregarded when local authorities determine if they have to contribute fully or partially to care costs. It said this could result in a homeowner receiving funded care while a renter would have to use the money from the sale of their home first.
The report proposed a lifetime tenancy or lease, more funding for the Older People’s Shared Ownership Scheme and incentives for ‘rightsizing’.
