The government needs to take a two-pronged approach to housing crisis

Sir Keir Starmer has repeatedly stated his party will be ‘builders, not blockers’. True to his word, the recent King’s Speech and Angela Rayner’s announcement on planning reform set out plans to build more homes.

Great aim, but to move away from the culture of blocking, more needs to be done than simply building; we need to cut the number of properties not being used at full capacity. If we did, we wouldn’t need to build so many new homes.

As things stand, there are nine million empty bedrooms across the country every night, with two thirds of over-65s having at least two empty spare bedrooms in their home.

The owners of such homes are often described as ‘bedroom blockers’, who many argue should move into smaller properties to free up space for families.

As someone on the front line of senior living provision, it’s clear to me that older people are not selfish boomers holding on to space they don’t need. Nor is simply reforming the stamp duty system – as is so often suggested – the panacea for tempting them out of their large properties.

UK woefully behind

The fact is that senior living is one area where the UK is woefully lagging countries such as the US and Australia.

The options for seniors looking to downsize are unappealing to many. I know this because, as is the case with many companies, Birchgrove was founded partly to solve a problem I’d experienced in my own life.

I first began looking into the options for seniors for my muse and best friend, who as it turns out is still so independent at the age of 87 she’s not ready to give up her family home just yet. My parents, on the other hand, have this year moved into one of Birchgrove’s developments and couldn’t be happier; in fact, mum dyed her hair pink to celebrate.

My story isn’t unique in this sector. Audley Villages was started almost 25 years ago by Nick Sanderson, who wanted to create a good home for his mother. He moved her into the first development and worked there every Friday so he could have lunch with her.

What I found when I personally started researching housing for seniors was that it was largely unsuitable. Sure, people can buy a smaller property, but one-level living is the preferred option of most downsizers and there are few bungalows left.

Then there’s a flat, but the uncertainty that comes with a leasehold purchase isn’t ideal at a later stage of life and many blocks are unsuitable for mobility reasons.

Many would be happy to rent in their later years, freeing up capital and doing away with the hassle of maintaining a property. The problem is that social housing is almost impossible to come by and the private rented sector is not really suitable for older people.

While Starmer’s government has committed to stopping private landlords being able to require tenants to leave with two months’ notice for no reason, they will still be able to ask tenants to leave if they want to sell or move in themselves. Therefore, it will remain too insecure for most seniors.

Now, of course, there are also purpose-built senior living rental properties such as Birchgrove’s, but we are providing only a drop in the ocean in terms of what’s needed. Of our three operational developments, two are at full capacity and have waiting lists of retirees looking to move in.

While we’d love to scale up all over the country – and we do have six further developments under way – we’re just one provider in what is currently a very small part of the build-to-rent sector.

Lack of funding

It isn’t only a lack of space that prevents homes being built, it’s also a lack of funding. Construction costs have soared in recent years and land prices are only ever moving in one direction.

This means the senior living rental provision the country does have is aimed at the mid to higher end, but it’s clear that even if there’s not already a need across all income levels, there will be in the future. With more investment and economies of scale, developers should hopefully be able to get prices to levels that work for all income groups.

It might seem like a strange thing for a CEO with strong aspirations for their own company to say, but we need more competitors.

I would argue the government has a role to play in the expansion of senior living rental properties. This is not just because if we free up larger homes by moving seniors into smaller properties, fewer new homes will need building. It is because it’s likely it will be the government that picks up the tab down the line if we don’t prepare properly for the societal shifts currently taking place.

The most recent English Housing Survey found that households headed up by someone over 65 made up 10% of the privately rented sector. This percentage may seem relatively small now, but it’s those renting in the age groups below that have some forecasters concerned. A report by the Pensions Policy Institute last year found that the deterioration in home-ownership levels among those aged 45-64 today, combined with the dwindling supply of social housing, could mean that by 2041, 17% of pensioners will be renting privately.

It warned many of these won’t have the funds to rent through retirement, and suggested they would end up reliant on housing benefit. It also noted this cohort had “not featured widely in recent policy debate”.

I completely agree. But the good news is that there is time to rectify this before this cohort gets to retirement age.