Government agencies launch panel to find elderly housing innovation

Launched by the homes and communities agency, in partnership with communities and local government and the department of health, the Housing our Ageing Population: Panel for Innovation, report calls for positive action in response to the UK's ageing population.

The 60-page report recommended the design and development of new homes for older people must become a national priority if the UK is to avoid a future housing crisis.

The report urged insurance companies to undertake further research into equity release products that would enable older people to pay for housing costs, such as adaptations or extra care within their own homes.

Pension funds, insurance companies and other financial institutions are also being urged to look at opportunities for investment in housing developments for older people, such as through use of real estate investment trusts.

With the number of people aged 60 or more projected to increase by 7m in the next 25 years and much of the UK's existing housing stock inaccessible or unsuitable, the lack of good quality homes for older people is a real concern, the report said.

Tony Pidgely, member of the panel and chairman of urban regeneration firm The Berkeley Group, said there was no 'one-size-fits-all' solution.

He said: "The provision of the right housing for older people will need to be addressed across a number of fronts. We can easily achieve early wins by addressing the new build element, but we will also need to address how we retro fit existing properties and create innovative new solutions for different types of homes."

Andrea Rozario, director general of trade body Safe Home Income Plans, said equity release providers do offer products that enable consumers to release equity to pay for housing costs and alterations to the home.

She said one of Ship's members was currently piloting a product designed for people that only want to release a small amount of equity in order to stay in their own homes.

She added: "The equity would pay for things like employing a gardener and general care in the home. The lender is looking at working with local authorities on this initiative."

Kevin Morgan, managing director of Hitchin-based Consilium Financial Planning, said it was crucial this issue is discussed.

He said: As an ageing nation, adequate housing for the older generation is a big problem. We have good equity release products in the UK, but you can always improve the flexibility."