A Quiet Revolution in Older People's Housing

In a small corner of East London a quiet revolution is building in the field of older people’s housing. Not the sort of revolution that sees blood on the streets. But a revolution that changes what was previously thought impossible.

In June 2015, Gateway Housing handed over the keys to the first leasehold retirement housing ever built in Tower Hamlets. It surprised me when I came to work in the borough that none of the bigger operators had developed leasehold retirement housing here. High levels of deprivation combined with high land prices have been a strong deterrent to the private sector.

Conscious of the high levels of overcrowding and a shortage of family housing, we were keen to explore options that would encourage empty nesters to move. So in 2012 we set up an ‘Older People’s Housing Commission’ to consider:

• The types of accomodation older people will want in years to come, and;
  
• Whether this includes property ownership options
  

We learnt that in our bit of the universe older people want:

• Hybrid accomodation closely integrated with family housing, local services and wider communities,
  
• High quality design, affordability and flexibility, which does not include care as part of the core package
  

We decided to take the plunge and develop a more aspirational but affordable offer to older people. We used the Older People’s Shared Ownership (OPSO) model where the leaseholder purchases up to a 75% share but pays no rent on the balance. We have started off small, developing just 8 leasehold homes within a block of 40. The others are let to older people at affordable rents.

The block sits within a small regeneration scheme where there are also homes to rent and homes for outright sale to single people, couples and families. It offers high quality design with contemporary interiors, spacious balconies, and shared green space. There are flexible packages of support that residents can buy into when they need it.

Within a month of completion 75% of the leasehold retirement homes are sold or ‘under offer’. We continue to generate interest and expect to have deposits on the remaining 2 by the time this article is published. We noted that all purchasers are cash buyers of the full 75%. There are no mortgage products that will support the Older Person Shared Ownership product. But their profile indicates that we have helped to release much needed housing for local people.

• One purchaser was a Gateway social housing tenant
  
• The majority live within 20 minutes from the development
  
• Most are moving as their current home is too large for them or unsuitable
  
• All have gone for the basic level of care but valued having the option to increase it if required
  
• They are aged 57-67, with the exception of one couple who are in their 80s
  

We have demonstrated that there is a market for leasehold retirement housing in Tower Hamlets. And we have started on our second hybrid scheme in another part of the borough. It feels good to meet the aspirations of a growing and under provided for group in a way that works for everybody.