New retirement housing resale value increases, research says
New research into ‘traditional’ leasehold retirement housing shows that recently built properties, on average, increase their value upon resale.
Drawing on available Land Registry data, matched to its own database of retirement developments, Elderly Accommodation Counsel (EAC) has begun to shed light on a topic that has raised questions from prospective purchasers for many years.
The housing options charity’s research finds that on average new retirement developments with onsite management, but not care services, and built since 2009, saw an improvement in property values upon subsequent resales made between five and nine years later. However, an average retirement property built between 2003 and 2008 and sold during, or shortly after, the 2007-08 recession, would have experienced a fall in value.
As part of EAC’s research, they considered a number of factors that can lead to improved resale values and found that proximity to local shops and services, as well as having an engaged scheme manager, are two essential components for any retirement development.
NAEA Propertymark is working with the EAC on producing guidance for its members on the key points to consider when valuing retirement property.
The full report explores a range of measures that developers and managers have taken in recent years to improve resale values and makes a number of recommendations that EAC believe could further build confidence in the traditional leasehold retirement housing market.
Adam Hillier, author of the report, said that:
“This report shows that recently built traditional ‘sheltered’ properties have, on average, improved their values upon resale. EAC looks forward to working with the industry to drive forward its recommendations for the further benefit of consumers. EAC hope to conduct further research on specific aspects of the report in the future.
“To complement our report and to better support consumers that are considering a move into retirement housing, EAC have launched a new version of our HousingCare.org website, which will provide the latest information on retirement property prices. The website is also supported by a new range of information sheets and online guides that cover key topics related to the report’s focus on buying and selling retirement housing.”
Kindly shared by NAEA Propertymark
