Legal & General has launched a retirement homes developer and operator dubbed Guild Living, unveiling plans to deliver around 3,000 residential units in the next five years equating to a gross development value of around £2 bn (€2.3 bn).
Phil Bayliss, CEO of later living at Legal & General and chairman at Guild Living said: 'With over three million over 60s in UK seeking to downsize their homes, we see a £100 bn investment opportunity.
'Some 84% of the UK population lives in urban areas and we expect retirees to continue to migrate to UK towns and cities to enjoy all the local amenities they have to offer, as well as to be closer to their loved ones and transport links,' Bayliss added.
According to research sourced by L&G, the number of over 85 year olds living in the UK is set to double by 2041 and treble by 2066 – by when there will be a further 8.6 million residents over the age of 65.
The firm said that there had been 'a fundamental failure to address the specific housing, health and care needs of this demographic'. It also cited the growth of urbanisation as a growing global phenomenon.
The Guild Living properties, set in urban environments, will be complemented by academically-accredited wellness programmes, L&G said, 'to enable and enrich an independent, active later life'.
The development programme launches with two sites, in Bath city centre, and Epsom, Surrey. Each scheme will comprise around 200 apartments, with a restaurant, a physiotherapy gym and pool, consultant rooms for GP surgeries, a children’s nursery and retail space for local businesses. Residents will live independently, with care available if and when needed, L&G said.
'We are establishing the Guild to address this staggering opportunity and tackle the NHS and care crisis head on,' Bayliss added.
Michael Eggington, CEO at Guild Living, said that this kind of scheme was already more popular internationally. 'Over 6% of over-65s in the US and Australia live in later living communities. This is in comparison to the 0.6% of over-65s choosing a retirement community in the UK.'
L&G first entered the later living sector in 2017 through the acquisition and establishment of Inspired Villages Group, which has made capital commitments of half a billion pounds across its seven villages to date.
