Older people are facing a shortage of suitable housing for their retirement, putting pressure on the wider property market.

A new report by Knight Frank, The Case for Retirement Housing, provides in-depth insight into the supply of retirement housing in Britain shows that developers and housebuilders, and to a certain extent buy-to-let landlords, have failed to tap into the opportunities created by an ageing population and there remains a lack of appropriate homes being constructed in the retirement housing sector.

Knight Frank point to the fact that there is currently 11.8 million people in the UK over the age of 65, which is forecast to rise by 20% over the next decade. This means that the time spent in ‘retirement’ will also lengthen, underpinning the crucial need for retirement housing.

Some 725,000 homes in the UK are currently classified as ‘retirement housing’, ranging from age-restricted developments to close care housing, which accounts for around 2.6% of total housing stock and is dominated largely by older stock in the affordable housing sector. Private retirement housing accounts for less than 1% of all dwellings in the UK.

Tom Scaife, head of retirement housing at Knight Frank, said: “The forecast growth in the UK’s older population, coupled with a need for housing that can free up family homes and help alleviate the stress on the NHS and social services, means that the case for retirement housing delivered at scale has never been stronger.

“In its basic form, retirement housing can help reduce loneliness, is a safer environment in a community setting and reduces visits to hospital. The scenario of falling down the stairs at home, commencing a cycle of increased frequency and finally, the need to go into a care home could be negated.

“With increased awareness of the benefits of retirement housing, clarity at the planning stage, and some much needed incentives retirement housing can be delivered at scale and help to tackle the social care and housing crisis in one go.”

Article courtesy of Landlord Today | Sign up for Landlord Today newsletter | Get this news on YOUR site!

The Mortgage Works (TMW) is removing all upper age restrictions across its buy-to-let product range for experienced landlords.

Currently, the buy-to-let arm of Nationwide Building Society’s maximum lending age is 70. But having decided that cases from older borrowers who have long invested in the BTL sector offer no more risk than younger ones, TMW will scrap the maximum age restriction for those older borrowers who qualify next week.

From Wednesday 18th April, there will be no maximum age at application nor at redemption for experienced landlords looking to borrow up to 65% loan-to-value (LTV) for either purchase and remortgage.

The same criteria will also apply to limited company mortgages, currently being offered by TMW.

TMW recently increased the maximum LTV for buy-to-let mortgages from 75% to 80% for first time and landlords. 

Paul Wootton, TMW’s director of specialist lending, said: “The group of experienced landlords is both growing and growing older, and market options are more limited for retirees seeking to retain their buy-to-let properties in order to supplement their pension.

“By removing the maximum age when applying for a buy to let mortgage, TMW is supporting the increasing market demand in this area.”

Article courtesy of Landlord Today | Sign up for Landlord Today newsletter | Get this news on YOUR site!

Barclays and NatWest have introduced rate changes to some of their buy-to-let purchase mortgage products.

Barclays has raised rates across no fewer than 62 products on its buy-to-let, residential and Help to Buy ranges by up to 12bps.

The lender blamed the recent increase in the cost of funds for the hikes. 

NatWest has also raised rates, which it said reflected ‘current market conditions’.

Some of its two-year fixed rate BTL purchase products have increases of one to 3bps, while some five-year fixed rate purchases are up by between 6 and 11bps.

Natwest has also made changes to some buy-to-let remortgages, particularly the two-year fixed rate deals, which are up by between one and 6bps.

A NatWest Intermediary Solutions spokesman said: “Having reviewed our portfolio we have made some adjustments to rates to reflect the current market conditions and balance our mix of business.”

Article courtesy of Landlord Today | Sign up for Landlord Today newsletter | Get this news on YOUR site!