• A  A  A  A  

Future of Supported Housing Funding

Michael Voges Low Res

In a statement last week, Marcus Jones, Minister of State for Local Government announced a new funding model for state-funded supported housing, including extra care housing.

The announcement follows Theresa May’s statement last week that the Government had dropped plans to apply the LHA cap to housing benefit for state funded supported housing, and signals a more positive approach.

We will need to analyse the proposals in more detail, and will be keen to ensure that the new system does cover the real costs associated with extra care housing (including regional variations), which are higher than those required for sheltered housing

Nevertheless, this week’s announcement was welcome, demonstrating that the Government has listened to many of the concerns that ARCO and other sector bodies raised with them over the last two years.

In particular, the commitment to keep funding for extra care within the welfare system in order to provide certainty and allow for future demand is significant. The obligation on local areas to assess and plan for the needs of each older people requiring different housing types may also turn out to be beneficial to the sector.

ARCO will be engaging with members on the full detail of these proposals over the coming months. This will feed into our response to the consultations which will close on 23rd January 2018.

michael Signature

Michael Voges

Executive Director, ARCO

 

Posted in: Press Release  |  Comments Off on Future of Supported Housing Funding

Audley CEO Nick Sanderson elected as new ARCO Chair at annual retirement community sector event

  • Nick Sanderson, Founder and CEO of Audley Retirement, elected as new Chair of ARCO
  • Bank Leumi (UK) sponsor the annual ARCO member event, showcasing their commitment to the retirement community sector

At their AGM on 12 October 2017, ARCO members unanimously elected Nick Sanderson, founder and CEO of Audley Retirement Villages, as Chair of the ARCO Board of Directors. Nick has spent the past 30 years growing and developing Audley into a successful company providing high quality, luxury retirement villages across the UK, and is now spearheading the company’s expansion into the middle market under their new Mayfield brand. As a founding member of ARCO, Nick has a strong commitment to ensuring that the sector is ahead of the curve in providing the highest standards of service to their residents. Jane Ashcroft, Chief Executive of Anchor, was unanimously re-elected as ARCO’s Vice-Chair.

Nick took over the role of Chair from Richard Davis, the former Chief Executive of LifeCare Residences, who took up a new role in his native country of New Zealand earlier in the year after successfully spearheading the development of London’s first retirement village, Battersea Place.

The event, kindly sponsored by Bank Leumi (UK), also provided a forum for ARCO Board members and select guests to discuss the future of the housing-with-care sector, which has seen a flurry of new entrants in recent months.

The AGM and Board Meeting was hosted by ARCO Patron Baroness Sally Greengross, and took place at Bankhouse, a One Housing ‘Season’ retirement community in central London. The newly opened mixed-tenure scheme features 84 shared-ownership and socially rented retirement living apartments in the London Borough of Lambeth. The development has 14 storeys, and includes a restaurant, bar, lounge, on-site domiciliary care service, wellbeing spa, roof terrace with breath-taking views over the London skyline, and will soon include a floating garden for the enjoyment of its’ residents.

In the evening, the retirement community sector movers and shakers debated the future of housing-with-care at the annual ARCO Assembly event, which featured a lively presentation from ARCO Executive Director, Michael Voges, and spirited group discussion. The day concluded with a drinks reception and a three-course meal, which provided a chance for attendees to network, and celebrate ARCO’s achievements.

Nick Sanderson, CEO of Audley and newly elected Chair of ARCO said:
“ARCO has championed the approach of providing retirement housing combined with care and additional facilities, and its members set the standard for the industry. Audley, as a founder member, has been involved since the start, so I am thrilled to have been elected Chair as the organisation continues to grow its influence.

“The retirement housing sector is today faced with an unprecedented opportunity, although one not without its challenges. I look forward to working with the ARCO team and all members to increase the supply of retirement communities that meet the housing and care needs of our ageing population.”

Richard Martin, Relationship Manager at Bank Leumi (UK), said:
“Bank Leumi (UK) has been providing finance to support ARCO members developing retirement communities for more than five years, during which time we have seen the sector firmly establish itself as a distinct category of its own. As a relationship focussed bank, Bank Leumi looks forward to working with ARCO members over the coming years to create funding solutions that will assist in unlocking the sector’s full potential.”


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. ARCO was founded in 2012, and is now comprised of 30 private and not-for-profit operators of retirement communities. ARCO represents approximately 50% of the retirement community sector. ARCO sets high standards, and all ARCO members must adhere to the externally assessed ARCO Consumer Code. ARCO does not represent the traditional housing model where limited services and no care is available.

2. About retirement communities: Retirement communities 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. Retirement communities are also sometimes referred to as housing-with-care schemes; 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.

3. About Bank Leumi (UK):
Established in London over a century ago, Leumi Group is today one of Israel’s largest banking groups and a reputable global banking institution. The Group manages assets in excess of $360 billion and $8.9 billion in equities. Leumi operates over 250 branches and offices located across Israel and in key financial centres worldwide. Leumi offers a comprehensive range of specialised financial services to all customer segments.

Bank Leumi (UK) plc, a subsidiary of Leumi Group, has established a reputation as one of the leading foreign-owned banks in London. Offering a full range of corporate banking facilities, the Bank’s service is based on traditional values and personal relationships, assisted by the latest technology. Leumi UK is proud to have earned a reputation as a specialist bank that works hard to build long-lasting relationships with clients, while offering each individual the solution that is best suited to their needs.

Bank Leumi (UK) plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
leumi vector sponsors logo
www.bankleumi.co.uk

 

For further information on ARCO, please contact ARCO’s Executive Director, Michael Voges, on michaelvoges@arcouk.org or 07415 985 985.

Posted in: Press Release  |  Comments Off on Audley CEO Nick Sanderson elected as new ARCO Chair at annual retirement community sector event

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.

Posted in: Press Release  |  Comments Off on Resale values for housing-with-care buck retirement housing trend

Media Enquiries

For all media enquiries please contact:

Michael Voges
07415 985 985
michaelvoges@arcouk.org