Green shoots for Senior Living?

At the end of 2019, the Senior Living sector was following hot on the heels of the BTR and Student Accommodation sectors. At the opposite end of the age spectrum, by targeting the elderly, investors were looking to share in Savills’ estimated 45% under supply in the sector. Senior Living was set to be the next big thing.

Fast forward to 2020 and Covid-19 had put a spanner in the works. With outbreaks of Covid-19 commonplace in care homes, it was no surprise that investors to the sector had their confidences knocked. It is therefore encouraging to see that Schroder Real Estate and Octopus Real Estate have raised £40 million for their UK Retirement Living Fund. This may assist in putting Senior Living back on track as being a popular alternative investment.

Covid-19 has highlighted how many of our elderly population live in isolation; often in unsuitable accommodation and without proper care provision. Demand from the elderly for more suitable and community focussed accommodation is set to increase substantially. It will be interesting to watch who next dips their toes into this sector.