Areas with a large older population face greater demands in terms of health and social care provision.
Over the past two decades, the average age of a UK resident has risen by 2 years, to 40. Within 30 years, 1 in 4 people is expected to be aged 65 and over. Freshly released data from Centre for Cities reveal where the youngest and oldest populations in the UK are concentrated.
Recent figures predict one in six Britons alive today will live to a century.
The number of centenarians in the UK currently stands at 15,000 and the predicted growth of this older population is staggering. The population of people aged 90 and over has grown more rapidly than other age groups in recent years with forecasts revealing that around 10 million people alive today will reach their centenary!
Such findings have prompted the UK government to allot more than £300m to support the ageing population. Business Secretary Greg Clark announced that £210m will go towards the development of early diagnostic tools and innovative treatments while £98m will be spent on a ‘healthy ageing programme’ designed to help the elderly with the quotidian affairs that come with old age.
In conjunction with the government’s ambition to tackle dementia, England’s leading cause of death, another £40m will go to a dementia hub that will be established in London in partnership with University College London. The hub will host 350 leading scientists researching new treatments for the debilitating disease, supporting the government’s agenda to have the best dementia care internationally by 2020.
UK’s Oldest and Youngest Population
Freshly released data from Centre for Cities reveal where the youngest and oldest populations in the UK are concentrated. According to the independent think tank, over the past two decades, the average age of a UK resident has risen by two years, to 40. Within 30 years, one in four people is expected to be aged 65 and over.
While the youngest population in the UK reside in Slough with an average age of 33.9, the oldest population belongs to Blackpool, a seaside resort on the Irish Sea coast of England with an average age of 43.2. Following Blackpool are fellow coastal cities: Worthing (43), Bournemouth (42.8) and Southend (42.2). More than one in five residents of each city were 65 and over in 2016 — this seems to illustrate the attraction of the seaside for those in retirement and welcoming their sunset years.
Blackpool: Poor Health, Rich Demand for Care Homes
Areas with a large older population face greater demands in terms of health and social care provision. The 2017 Health Profile for Blackpool reveals that the health of the people there are generally worse than the England average.
According to a report by Joint Strategic Needs Assessment (JSNA), Blackpool has a higher recorded prevalence of dementia in those aged over 65, with a 3.4% population in Blackpool compared to 3.2% nationally. Not surprisingly, the majority of admissions to care homes in Blackpool is due to dementia.
The UK is alarmingly ill-prepared for this rapidly growing population, as JSNA reveals that even family carers of people afflicted with dementia themselves are infirm. This called for NHS to treat dementia as a priority area and thus, a National Dementia Strategy was launched in 2009. However, in 2011, NHS Blackpool conducted a survey of local GPs which suggested that dementia care of every degree still has many serious improvements to make, particularly towards the development and implementation of local care pathways and education programmes to meet GP requirements. Overall dementia care in Blackpool must improve and expand dramatically to tackle the increasing number of people with the disease.
Figure 1 – Blackpool: Males and Females aged 65+ expected to have dementia (projected to 2030)
The JSNA report also stated that the next common health crisis besetting the older population in Blackpool is depression, with depression rates expected to rise in the following years.
Again, it must be stressed that well-equipped and well-staffed care homes that cater to a range of diseases besetting the elderly, is not confined to Blackpool; the media is fraught with news of poorly-run and ill-equipped care homes across the UK.
Thus, the UK care sector is in urgent need of dementia-specific care facilities and nursing, with several being closed down due to an inability to meet Care Quality Commission guidelines and regulations. Moreover, care homes of substantial quality are particularly in high demand!
What inevitably trails such conditions is a thriving market that benefits investors. It is evident that high demand and seemingly perpetual relevance will continue to propel the care home market forward, and a weighted analysis of the yields will undoubtedly manifest the immense potential of this asset class.
Care Homes Investment: A Stand Out Asset Class
Care for the elderly generates in excess of £14.5 billion for the UK economy. According to The National Audit Office’s 2014 report into Adult Social Care, care needs are climbing. Effectively, the government is predicting that 1.7m more adults will require some form of care and support over the next 20 years.
Given its escalating demand, property group Knight Frank has placed care homes at the top of the list of high returns from property in the health sector, where yields of up to 10% are common.
Aside from rewarding returns, this commercial property investment also offers an exit in the form of a sell-back option to the developer at an appreciated value.
Carlauren Lifestyle Resorts Blackpool, once completed, will be one of the latest lifestyle quality care homes in Blackpool, offering investors 10% returns assured for 10 years. Exit is available from year five onwards. Alongside access to 24/7 care home packages, the luxurious 61-studio care home scheme located on Blackpool’s seafront boasts spectacular sea views, fine dining and bar, cinema, hair and beauty salon, and spa.
Feel free to contact the team at CSI Prop for more information and how to build an impressive property portfolio.
By Nimue Wafiya
CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence.
Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.
Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260