07.08.2024 - Labour Government needs to step up to solve Later Living Housing Crisis

07.08.2024

Specialist private client lawyers say that individuals are having to take much more responsibility for their later living provisions due to a concerning lack of preparedness by the authorities in providing appropriate senior housing.

Law Firm Irwin Mitchell, in partnership with Knight Frank, has released a report revealing the issues with senior living housing policy across UK local authorities.

The study shows that nearly one-third (32%) of local councils lack clear strategies to accommodate the housing needs of the ageing population. A particularly concerning figure considering projections that by 2043, the number of citizens over 65 will surge to 15 million, representing one in four people in the UK.

Now the specialist private client team at Irwin Mitchell, one of the largest such teams in the country, say that the current situation is forcing individuals to take things into their own hands and ensure they are making their one provisions for the future.

Expert Opinion

"Unless the new Labour Government spring into action on this housing crisis, the future could be quite bleak for our older generations.

"A shortage of suitable accommodation means older adults are stuck in housing that doesn't meet their needs making downsizing unattainable for many. Without suitable homes to move into, too many 'empty nesters' are rattling around in homes that are increasingly unsuitable for them, stagnating the housing market. Rather than downsizing when they want, potentially and legitimately passing funds to younger generations when they are well, they overstay in homes, which they are then forced to sell on unfavourable terms to move to care homes, restricting options for gifting.

"Having said that, it does look as though the Government are recognising the need to tackle housing with the appointment of Angela Rayner, the deputy Prime Minister, as the Secretary of State for Housing, Communities and Local Government. Labour's manifesto and the King's Speech also both highlighted the need for a substantial increase in home construction, aiming to build 1.5 million homes over the next five years. This initiative is expected to cater broadly across society, including first-time buyers and those seeking suitable retirement homes.

"The challenge for the new government is to identify the specific barriers and opportunities that particular people face when attempting to right size as they grow older. Individuals can also plan early, to ensure that they consider rightsizing at an appropriate time for them, they can then use the tied up equity in their home to enjoy life and/or to gift to future generations. Selling up and rightsizing means the cost of living and running the household will become cheaper. Without the upkeep of a larger property, you can significantly reduce monthly expenses, from utility bills to maintenance costs. Enhancing retirement.

"The Planning and Infrastructure Bill represents a welcomed step towards addressing the UK's housing crisis and infrastructure needs. It looks to streamline the planning process, reform compensation rules, and unlock development sites. But in order to ensure that the housing needs of the ageing population are met in time, the Government really needs to accelerate construction and make housing more affordable." Ian Bond, Lifestyle and Estate Planning Partner

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