Rethinking housing for over-55s

At our Birmingham property roundtable, one of the most forward-looking discussions focused on the growing housing needs of the over-55s. With an ageing but increasingly active population, many around the table agreed this is a critical gap in the market – and one Birmingham is well-placed to address.

While much of the UK’s property development has focused on first-time buyers, young professionals, and build-to-rent (BTR) co-living schemes, an equally pressing challenge is creating housing that meets the needs of an ageing population.

This is not a future problem – it is happening now. The UK’s over-55s demographic is growing rapidly, yet there is a noticeable lack of suitable, high-quality, flexible housing options. The discussion highlighted that the property sector must rethink its approach, not just in terms of supply but also in terms of understanding what today’s over-55s actually want.

The housing needs of today's over-55s

One of the clearest insights from the discussion was that traditional retirement housing no longer aligns with expectations. Many over-55s are still working, travelling, and leading active lives. They are not necessarily looking for age-restricted retirement villages or care homes – they want well-designed, flexible housing that allows them to downsize without sacrificing their quality of life.

Based on the discussion, there was consensus that over-55’s are looking for modern, well-connected apartments or smaller homes with shared amenities, concierge services, and easy access to transport, healthcare, and leisure facilities – while still remaining part of dynamic, multi-generational communities.

Another significant point raised was the increasing trend towards renting. Traditionally, homeownership has been seen as the ultimate goal, but for many over-55s, releasing equity in some cases to facilitate inheritance tax (IHT) efficient gifting, avoiding maintenance costs, and having greater flexibility makes renting an attractive option. However, high-quality, purpose-built rental accommodation for this demographic remains relatively rare in the UK, presenting a major opportunity for developers.

Why developers should take notice

Despite the clear demand, the supply of over-55 housing is not keeping pace. The roundtable discussion highlighted several reasons such as a a lack of diversity, planning restrictions, and financial viability.

• A lack of diversity in the market. Most housing aimed at older residents falls into two extremes – high-end retirement villages or care facilities – leaving a gap in the middle
• Planning restrictions. Many local authorities still have outdated policies that complicate securing approvals for innovative, multi-generational schemes
• Financial viability. Some developers hesitate to invest due to concerns about a relatively untested market. However, this challenge becomes less of a barrier as rental demand grows.

The rise of rental living for over-55s

A particularly interesting part of the discussion was how the property market is beginning to reflect broader consumer trends in the “subscription economy.” Just as younger generations have embraced streaming services and car subscriptions over ownership, older generations are starting to see the benefits of renting.

One attendee shared insight into new rental models for over-55s in the US and parts of Europe. These developments offer serviced, flexible housing with a strong emphasis on lifestyle. These schemes provide communal spaces, fitness centres, and optional care services without the stigma often associated with traditional retirement homes. While this model is still emerging in the UK, the discussion clarified that it has significant potential.

Planning reform and policy changes

Despite strong demand, several planning and policy barriers are holding back the development of over-55s housing. One of the biggest frustrations raised was the inconsistent approach of planning officers across different local authorities.

For example, Section 106 requirements vary significantly, making it difficult for developers to predict costs and viability. A more standardised approach could accelerate the development of high-quality over-55s housing.

There was also strong support for policy incentives that encourage downsizing. Many older homeowners hesitate to move due to financial burdens, particularly stamp duty. If the government introduced targeted relief for downsizers, it could unlock thousands of family homes and help rebalance the housing market.

Why Birmingham is well-positioned to lead the way

With its strong transport links, cultural attractions, and relatively affordable property market, Birmingham is in a prime position to become a leader in this space. While much investment has gone into developments aimed at young professionals, the roundtable discussion highlighted that developers need to broaden their focus.

Many elements that attract younger residents – walkability, leisure facilities, and strong public transport – appeal equally to the over-55s demographic. Developments that embrace multi-generational living, providing high-spec housing with shared spaces and strong community elements, will be well-placed to succeed.

A call to action for developers and investors

One of the most striking takeaways from the discussion was that the demand for high-quality over-55s housing is not just a niche opportunity but a significant growth area that will add opportunity to the UK’s housing market in the coming decades.

For developers and investors, this is the time to act. Those who can innovate in this space – whether through flexible rental models, high-spec downsizer developments, or integrated multi-generational communities – benefit from one of modern property development's most significant demographic shifts.

With the right planning reforms, financial incentives, and developer engagement, Birmingham could position itself at the forefront of this transformation. The demand is there – the question is, who will be the first to seize the opportunity?