How can we make senior living more attractive to investors?
In an article published in The Care Home Environment in May 2020, Real Estate Finance Partner, Adam Chamberlain, highlights how the Government should take urgent action to help encourage investment into much-needed Senior Living facilities, following the COVID-19 outbreak.
Adam highlights the steps the government should take to help the sector and says: “The care homes crisis has highlighted the urgency of securing funding for lower density senior living developments, that afford more protection if there are future coronavirus outbreaks.”
“We would expect that once the Government has laid the groundwork to stimulate investment, the Senior Living model should take off, delivering returns for both private sector investors and the taxpayer.”
“Greater provisions of Senior Living housing would enable older people to enjoy decades of independent, fulfilled lives, complying with social distancing and shielding guidelines but with support from medical professionals and carers easily at hand.”
“Regardless of COVID-19, the UK’s demographics suggests that more investment needs to be made in quality, attractive accommodation for older people outside of the care home model.”
Adam Chamberlain explains that once the Senior Living accommodation sector reaches a critical mass and its economic viability is clearly established, Government “subsidies” or other support can be withdrawn.
Adds Adam: “Once this sector is properly established we would expect it to go through the rapid growth of other property subsectors such as the “Build to Rent” sector which is now attracting large amounts of investment from institutional funds.”
“The pandemic is likely to have an enduring impact on how people live their lives. Luxuries such as international travel and restaurant outings may no longer be as desirable as they once were. People may instead choose to prioritise spending their money on safe and comfortable accommodation that affords them a sense of community in their later years.”
To read the full article, please click here.