Navigating Policy Uncertainty in Older Persons’ Housing

With so many changes, both proposed and recently implemented in planning policy, building regulations, leaseholder reform and rent reforms, how can older persons’ housing be delivered with any certainty?

Developers and operators are facing growing uncertainty that threatens the delivery of much-needed housing for an ageing population.

Key Policy Challenges

1. NPPF Changes

Proposed updates to the National Planning Policy Framework (NPPF) could help the sector, particularly through improved needs assessments and land allocations. However, no changes are planned for the use class system, a long-standing industry-wide recommendation, leaving flexibility and development potential limited.

2. Building Safety Levy

The building safety levy, which is another tax on development, applies to retirement housing, despite its higher costs due to larger apartments and communal facilities. Levy charges based on square meters squeeze margins even further, making some projects financially challenging.

3. Leaseholder Reform and Commonhold

Leaseholder reforms and a move to commonhold are not suited for specialist housing models that rely on operators. Expecting vulnerable, older residents to manage schemes themselves is unrealistic. Whilst there is lobbying to make this type of housing exempt, it creates huge uncertainty for retirement operators who face uncertainty in recouping their long-term investments.

4. Affordable Housing and Rent Policy

Many affordable schemes are delayed pending social housing rent and rent convergence policies. These hold-ups affect borrowing and development, further slowing supply in a sector already struggling to meet demand.

Policies are often introduced in isolation, without considering the full journey from planning through construction to occupation. A joined-up approach, starting with a clear use-class system and extending through planning, building regulations and occupation, would give developers the certainty needed to deliver more projects efficiently.

The challenges are clear, but so is the opportunity: coordinated, holistic policies can unlock growth in older persons’ housing. Industry leaders, policymakers, and developers must collaborate to provide the certainty this sector needs.

We work with developers to evaluate project feasibility under the current regulatory landscape and identify opportunities for growth. Reach out to schedule a tailored planning review. Contact us on 0123 552 3139.