• A  A  A  A  

Resale values for housing-with-care buck retirement housing trend

 

  • Independent research shows resale values for housing-with-care properties performing well.
  • Findings show housing-with-care resale values outperform those for general retirement housing.
  • Property values for housing-with-care properties increased by an average of £41,391 between sale transactions, and closely track HPI.

In response to recent media stories (BBC Moneybox, 9 September 2017) regarding the falls in values for retirement housing, ARCO Executive Director, Michael Voges, makes the following statement:

“Recent media stories have highlighted drops in value of a substantial number of traditional retirement housing apartments. It is important to note that resale values for housing-with-care developments (such as retirement village or assisted living apartments) do not follow this trend and are healthy, with 80% of resales increasing in value and generally following house price inflation.

Traditional retirement housing developments usually include only a limited range of communal facilities and services. In contrast, housing-with-care developments typically offer a much greater range of services and facilities, including care provision. In addition to social care, support services typically include wellbeing services, 24 hr support, on-site dining services, social activities, and leisure facilities which can include craft rooms, fitness suites, swimming pools or libraries. Operators of housing-with-care schemes manage the services and facilities on a long-term basis, and have an ongoing interest in both the success of the schemes and value of the individual properties within them.

Reflecting this difference in product and operational model between housing-with-care and general retirement housing, recent independent research by property advisors JLL has found that the resale values for housing-with-care properties perform strongly. The research finds that 80% of re-sales for ARCO member housing-with-care properties increase in value, and that overall price growth in the sector strongly mirrors average house price trends.

ARCO members strive to set standards, adhere to good practice, and provide high quality services for older people. We believe our sector’s strong resale values reflect this.”

ENDS

 

Notes to editors

1. About ARCO: ARCO (the Associated Retirement Community Operators) is the trade association for operators of housing-with-care developments for older people, comprised of 31 private and not-for-profit operators of retirement communities. All ARCO members adhere to the externally assessed ARCO Consumer Code. ARCO does not represent the more traditional retirement housing model.

2. About housing-with-care: Housing-with-care schemes typically consist of individual one or two bedroom flats or small houses, located in a development of similar properties. Residents have access to a range of services and facilities, which will usually include optional on-site care, 24-hour staffing, and dining and leisure facilities, and may also include bars, gyms and craft rooms. Housing-with-care schemes are also sometimes referred to as retirement communities; retirement villages; extra care housing; assisted living; or close care apartments. They sit in between traditional retirement houses (which have less extensive staffing and leisure facilities), and care homes, and can be in urban or suburban locations. To find an ARCO registered retirement community in your local area please click here: http://arcouk.org/arco-registered-schemes/

3. JLL Research: JLL’s Housing With Care Index (March, 2017) is based on analysis of 22 years’ worth of historical sales data for 2,400 ARCO member housing-with-care property units. It finds that the average price change between transactions was £41,391, with increases in value greatest in London and the East of England. The report estimates that, based on an average annual growth rate of 6.0%, a housing-with-care property in the dataset would double in value in 12 years. JLL Housing-wit-Care Index (2017) can be downloaded here: http://www.jll.co.uk/united-kingdom/en-gb/news/3072/retirement-living-properties-set-to-double-in-value-in-just-over-a-decade-predicts-jll

 

For more information contact ARCO Executive Director, Michael Voges, at michaelvoges@arcouk.org or on 02036971204. Alternatively email Policy and Communications Manager, Maia Beresford, at maiaberesford@arcouk.org.