Experts Highlight Commercial and Social Opportunities in Later Living Sector
London, 5th June 2019 – The Later Living sector presents a prime opportunity for investment and innovation, offering investors both commercial and social rewards.
Investors should be alert to the vast potential opportunities that the sector presents, according to City law firm Rosling King (RK).
Speaking at a seminar in London today, hosted by RK and award-winning architects, Assael Architecture, Alexander Pelopidas, partner at RK, said:
“Later Living is primed for investment and innovation. It’s a sector that is fragmented but within that lie opportunities for bold investors.”
Pelopidas noted that current market leaders are undertaking what feels like a natural progression from student housing and build-to-rent as the private sector responds to the needs of the population.
“Later Living will have a worthy social impact on society as well as the real estate industry, for example, in freeing up residential stock or rejuvenating the high street. All of which is pushing innovation in design and services.
“Potential pitfalls and operational issues can arise and those interested in investing in the sector should ensure they have sufficient legal and operational expertise in place.”
Félicie Krikler, director of Assael Architecture, noted:
“By 2041 25% of the UK population will be over 65. There is a huge opportunity to enable people to age better. At present, it is a very fragmented market. The luxury and affordable ends of the market are generally well served but the mid-market less so and that is the segment that will apply to most people.
“People will increasingly look for low maintenance, smaller properties and making them part of inter-generational communities will have a positive impact. There are 5,000 high streets in the UK and the decline of large footprint retail spaces does present a huge opportunity for housing to help revitalise town centres.”
Tony Throp, investment director at Puma Investments UK, noted that there is currently a lack of awareness and knowledge surrounding Later Living:
“People don’t really know what Later Living really means and what is available. There will be growth but first there needs to be a broad promotion of the Later Living asset class.”
Anthony Oldfield, director at JLL Ltd, remarked on the current state of the Later Living sector:
“Access to land is the key issue holding the market back. The Later Living sector is still quite immature and that is why lenders still see it as being high risk. We need to bring more schemes online to get over that hurdle.
“There are huge opportunities for developers and investors in Later Living. Enhanced choice for consumers across the board will only help promote this emerging asset class.”
Joe Gaunt, founder and CEO of Hero Wellbeing highlighted the opportunities offered by new technology and how it can be integrated into Later Living:
“There is growing evidence that in-person initiatives supported by digital enablers help people live better for longer. For example, if you have a healthy cooking club in a community that is then supported with a digital platform for sharing recipes and supporting each other subsequently people are more likely to stick with it. We have already seen a substantial reduction in loneliness among people who participate in these digital initiatives.
“Using insight from anonymised data can enhance operational aspects of later living assets. Specifically, digital enablers can help promote a better quality of life for later living residents.”
Kindly shared by Rosling King LLP