Silent Crisis Unfolding in Plain Sight

England is approaching a profound demographic shift. Within the next decade the country will become a “super-ageing” society, with around one in five people aged 65 or over. Yet despite the scale of this transition, the housing system remains poorly equipped to support people as they age. The debate around housing supply continues to focus primarily on overall numbers, while the specific needs and opportunities associated with an ageing population remain underdeveloped. Addressing this gap is not simply a social policy issue; it is central to the future sustainability of the housing market, the health and care system and the wider economy.

The scale of both the need and the opportunity cannot be underestimated. England is currently delivering less than 7,000 specialist homes for older people each year. However, independent analysis suggests that between 30,000 and 50,000 age-friendly homes will be required annually if the housing system is to respond adequately to demographic change. Reaching that level of delivery would represent a major transformation of the sector and could require investment of up to £15 billion each year.

Such a shift will not happen through incremental change alone. Achieving national growth in supply will require unprecedented collaboration between the public and private sectors. Developers, investors and lenders increasingly recognise the long-term potential of later living housing, particularly given the stability and demographic certainty of demand. However, many also see a sector characterised by policy uncertainty, fragmented regulation and inconsistent planning outcomes. For large-scale institutional capital to flow into the sector, investors must see credible, long-term structural reforms that reduce risk and provide confidence in the stability of the market.

Government therefore has an important role to play in shaping the conditions for investment. By securing borrowing at more favourable rates, government could help unlock large-scale, long-term investment in affordable and specialist housing. Lower financing costs would make many developments more viable, particularly those that incorporate care or support services and therefore have more complex operating models.

Alongside this national approach to investment, there is also a strong case for devolving greater control over housing funding. Currently, much of the capital investment for housing is routed through national programmes administered by Homes England and/or the Greater London Authority, along with the newly established National Housing Bank. While these programmes play an essential role, they are not always fully aligned with the distinct spatial and demographic realities of different regions. Devolving a proportion of this funding to regional partnerships—whether through Mayoral Combined Authorities or clusters of local authorities working together, as recently announced, will create a more responsive and coordinated system.

Regional bodies are often better placed to align housing investment with local spatial strategies, infrastructure planning and economic development priorities. They can also bring together the key partners required to accelerate delivery, including planning authorities, health and social care systems, transport bodies and local social housing and private developers and/or housebuilders. By coordinating these relationships, regional partnerships could support a stronger pipeline of age-friendly developments while ensuring that new homes are integrated into well-connected and sustainable communities.

However, unlocking investment and improving governance structures will not by itself solve the fundamental market challenge. At present, and as identified in the Older People’s Housing Taskforce report, there is no widely scalable housing model that works for people of lower to middle affluence—worryingly the largest group of people aged over 65. The current system largely caters for two ends of the spectrum: higher-value owner-occupied retirement communities and more traditional forms of social or supported housing. Between these two sits a large and growing cohort of older people whose needs are poorly served.

For this group, the choices are often limited. Many remain in mainstream homes that were never designed for later life—properties that may be difficult to maintain, poorly insulated or inaccessible as mobility changes or needs increase. Others may wish to move into more suitable accommodation but find that the available options are either unaffordable or unattractive. Without viable alternatives, the result is a form of “housing inertia”, where people remain in homes that no longer meet their needs.

This has consequences far beyond the housing system. Inappropriate housing is closely linked to poorer health outcomes, increased risk of falls and greater demand for health and social care services. Conversely, attractive, well-designed mainstream homes and supportive age-friendly, intergenerational communities can help people maintain independence for longer and provide connectedness, reducing pressure on public services while improving quality of life.

Developing housing models that work for this middle group will therefore be critical to the future of the sector.  When planning for housing growth, it also offers a significant market opportunity. This could include a wider range of tenure options, such as shared ownership for later life, rental-based retirement communities, mixed-tenure developments that combine affordability with long-term financial sustainability, or community-led approaches that foster mutuality such as cohousing. Institutional investors may also play an important role in expanding professionally managed rental models, provided that the policy environment offers sufficient certainty.

Ultimately, housing for older people should not be treated as a niche or specialist sub-sector but as a central component of the national housing system. Enabling people to move into homes that better suit their needs can free up sought-after family homes, stimulate local housing markets and support healthier ageing.

Delivering this transformation will require leadership and coordinated action across government and the private sector. National policy must provide long-term direction and financial mechanisms that give investors confidence, while regional partnerships must be empowered to align housing investment with local strategies and infrastructure. Crucially, the sector must develop housing models that work not just for the wealthiest households or those eligible for social housing, but for the large middle group whose needs are currently overlooked. If we are to meet the needs of our ageing and increasingly more diverse population, we all need to ‘Think housing’, ‘Address ageing’, ‘Promote wellbeing, and ‘Create inclusive communities’.

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If you found this of interest, a copy of the Taskforce report can be accessed here (opens new window). 

In addition, Professor Julienne Meyer is co-chair of the Housing and Ageing Alliance. Hosted by the Housing LIN, the Alliance’s website can be accessed here. 

And lastly, look out for further details of the Vivensa Foundation’s SHAPE programme which will be seeking to test out many of the points identified in this guest blog. More about this here.