Increased Housing Allocations for Older Persons’ Housing is a Necessity

The UK’s ageing population continues to grow, yet the delivery of specialist housing for older people remains alarmingly low. Despite the government’s ambitious overall housing targets, there is still very little focus on homes designed specifically for later living.

We are causing ourselves a future issue by not addressing this problem, an undersupply of appropriate homes that will lead to greater pressure on social care services and the NHS, as more older people remain in properties that are no longer fit for purpose.

The Planning Gap: Underrepresentation in Local Plans

Is it any wonder this is happening, given the lack of recognition for older people’s housing within Local Plans?

According to the Older People’s Housing Taskforce, only 36.2% of Local Plans in England include a specific policy for Older People’s Housing (OPH) or Later Living Housing (LLH) and even fewer make any specific land allocations.

The Mayhew Review highlights a striking example:

West Oxfordshire District Council formally adopted its Local Plan in 2018, covering the period from 2011 to 2031. In a district where 30% of the population is over 65, there was not a single allocation for retirement housing.

This example is not an anomaly; it’s representative of a systemic issue across much of the country.

The Missed Investment Opportunity

This under-provision persists despite clear evidence that the market for later living housing is financially strong.

According to Knight Frank, price growth for independent living and assisted living properties has outpaced mainstream residential housing, rising 55% since 2009, compared to 42% average house price growth across England in the same period.

The demand is there, and this demographic often holds substantial housing wealth, making it a low-risk market for developers and investors when compared with other buyers who normally require large deposits and mortgages. Yet, delivery remains sluggish.

A Solution with Triple Benefits

With Local Authorities under pressure from rising waiting lists and increasing temporary accommodation costs, it’s understandable that their focus is on delivering general housing numbers. But this misses a key opportunity.

Building retirement or later living schemes creates a powerful “three-for-one” benefit:

Frees up existing family homes as older people move into more suitable accommodation, therefore addressing the temporary accommodation issue that general needs housing does.
Reduces care costs for Local Authorities, as residents in well-designed housing maintain independence longer.
Eases pressure on the NHS, as improved living conditions lead to fewer falls, hospital admissions, and health complications.

In other words, investing in specialist housing delivers social, economic, and health dividends that general needs housing simply doesn’t.

What Needs to Change?

When reviewing and updating Local Plans, Councils must prioritise allocations for older persons’ housing. It is not enough to rely on windfall sites; these will never meet the scale of need.

At the same time, the private sector has a role to play. Developers and land promoters should engage with landowners and highlight the social and commercial benefits of bringing forward later living schemes in Call for Sites submissions.

Building Aspirational Homes for Later Life

Finally, the homes themselves must be aspirational, places where people want to live, not where they feel forced to move. Good design, accessibility, and community connection are essential ingredients.

The challenge is clear: we must stop treating housing for older people as a niche issue and recognise it as a central pillar of housing and health policy. Delivering more and better later-living homes isn’t just a social good; it’s a strategic necessity.

Written by Mark Slater, Managing Director at WWA