UK Seniors Housing Market Update
Knight Frank’s review of the key investment and development themes in the UK Seniors Housing market
3 minutes to read
Delivery picks up…
Some 6,380 new seniors housing units were added to supply in 2024, across 119 schemes – representing a 4% increase on the previous year’s output. This growth occurred despite a decline in the number of standalone developments, reflecting a shift towards larger-scale projects. Around 10% of schemes completed in 2024 comprised more than 100 units. The trend toward larger developments is evident across the Seniors Housing sector, but Integrated Retirement Communities (IRCs) continue to lead in terms of scale. IRCs remain a key focus for operators, investors, and lenders, underscoring their growing importance in the market. Larger schemes also contribute to improved operational efficiency, which is critical for IRC operators committed to long- term service delivery.
… led by IRCs
The UK Seniors Housing market has demonstrated steady growth over the past five years, with the total number of completed units rising by 4% – from 739,342 to 769,280. IRCs have seen particularly strong growth, with supply in this segment increasing by 11% over the same period. In 2019, IRCs accounted for less than one-fifth of the total supply; since then, they have represented half of all Seniors Housing units delivered. Regionally, IRC delivery was concentrated in the South East (36%), followed by the North West (23%) and London (11%).
A similar pattern was observed for Retirement Housing developments, where the South East again led with 21% of deliveries, followed by the West Midlands and East of England. These regional trends largely align with population growth among older age groups.
Future supply to rise
Delivery is expected to increase. Based on estimated completion dates, nearly 8,000 new seniors homes are expected to complete in 2025. Should this be the case it will make 2025 the strongest for new delivery since 2018. Yet while delivery is expected to rise, it will remain chronically short of need. The 2022 Mayhew Review recommended 50,000 new seniors housing units are built each year to meet demand. As has been the case in recent years, IRCs are expected to account for the largest share of delivery, accounting for 53% of expected completions.
Shifting tenures
The private rental market presents a significant opportunity for future growth. Over the past five years, the number of Seniors Housing units with market rent as the primary tenure has increased by 24%. While still a minority, a growing number of schemes now incorporate a private rental element. This expansion reflects a broader shift in operator business models, with established players integrating rental tenures into their offerings. The rise in seniors renting also mirrors wider trends in the housing market: in 2008/09, only 14% of over-55s rented, compared to 20% in 2023/24, according to the English Housing Survey.
Planning for the future
Analysis of planning data shows that 244 new planning applications were submitted last year, with the potential to deliver more than 16,000 new units. Meanwhile, some 230 schemes (13,478 homes) were granted full planning permission in 2024. Of the homes granted planning permission last year, 57% were located within IRCs. It takes the total pipeline of seniors homes across the UK to 30,000 homes, of which nearly 13,000 are currently under construction. The largest concentrations of pipeline in terms of the absolute number of homes are found in the South East, followed by the North West and the East of England, mirroring the trends seen in current supply. Combined, they account for just over half of the total.
