‘Right-size’ rather than ‘down-size’ – the growing demand for later living developments

The growth in the UK’s ageing population is presenting a unique opportunity for developers and landlords alike, with an increasing demand for housing solutions that cater to the needs of older adults.

Research by the Centre for Ageing Better suggests that over half of people over 65 live in homes that do not meet accessibility standards and many live in properties that are too large for their current needs. Later life developments have emerged as an innovative response to this growing requirement for age-appropriate housing. These developments provide specialised housing with integrated social, healthcare and recreational facilities to support the varying needs of residents.

Evidently, later life developments are likely to become a highly sought-after commodity in the coming years. If you are a developer looking to explore a different style of housing scheme, or a landlord considering repurposing your existing portfolio to appeal to a different type of tenant, later life developments could be a great option.

Later life developments will, however, need to cater to a unique range of requirements when compared with standard residential housing. This may pose a challenge for those who do not have experience in the care sector. We have, therefore, set out some key points to initially consider if you are interested in pursuing this opportunity.

Retail and leisure amenities in later living developments

Lifestyle-led developments are increasingly focused on well-being and community engagement. Developments typically include retail, hospitality and leisure facilities providing residents with spaces to relax, enjoy activities and lead independent lives. Developments are therefore likely to be considered mixed use and will consequently require developers to focus on planning considerations, to ensure the relevant use class certificates are obtained.

BSA implications for later living developments

The Building Safety Act 2022 (BSA) imposed a stricter building safety regime on all building work, in particular by creating new duty holder responsibilities for  all those involved. As many later living developments are also likely to qualify as ‘Higher-Risk Buildings’ (HRBs) (being over 18 meters in height or at least 7 storeys with two residential units, or care homes), the BSA regime for HRB construction, and once constructed, occupation, will also apply. If the development is a HRB, the BSA Gateway requirements will need to be followed. During the development’s planning permission stage (Gateway 1), fire safety and structural considerations will need to be addressed and strategy documents submitted for approval by the Building Safety Regulator (BSR) who becomes a statutory consultee. Pre-construction, developers will need to obtain building control approval from the BSR in order to commence works, and during the construction phase the developer must ensure continuous reporting of safety matters and submit approvals for any changes to the works (Gateway 2). Once construction work is complete (and prior to occupation of the development) a completion certificate must be obtained from the BSR to confirm the development is safe for occupancy (Gateway 3) and the building registered as an HRB.

Specific fit outs for later living developments

Specific fit out requirements are crucial to ensuring that these developments comply with legislative regulations; meet the needs of residents and provide comfortable living spaces addressing any specific accessibility requirements.  This is particularly important for those considering repurposing existing buildings. Given the potentially extensive number of alterations that may be required to meet the needs of residents, you will need to consider whether your property can support these changes and whether any specific permissions will be required, such as listed building consents.

Suitable sites for later living developments

Sites must  be carefully selected to ensure suitability, not only in terms of space but also accessibility to essential services like GP surgeries, shops, pharmacies and transport links. Whilst developers may lean towards suburban and rural areas, which can offer a more peaceful and sustainable environment, it is important to ensure that the development is not isolated from key amenities and to consider proximity to neighbouring towns when planning such a development or incorporating retail space within the development.

Our Real Estate team at Thomson Snell & Passmore LLP specialises in navigating the   unique challenges of later life living developments. If you are interested in exploring these opportunities or need expert guidance, get in touch today.