13 Oct AHH’s Mission: Delivering solutions that generate greater value for all

In the UK’s worsening housing crisis, 6 million elderly people are in need of an affordable housing solution. And it’s only going to get worse. 

The UK has seen a huge growth in the ageing population – today, there are almost 11 million people aged 65 and over, making up 19% of the total population. In 10 years’ time, this will have increased to almost 13 million people or 22% of the population. 

Much of the UK’s housing stock is aged, unsuitable for older adults, and of poor quality. With the rapid growth in ageing population, this leaves many elderly people vulnerable to expensive and/or inappropriate housing, causing health issues as well as strains on their physical and mental wellbeing.  

• Half of all older people cannot afford a home suitable for their needs
• 85% of health and social services are used to care for the elderly
• Only 5% of those over 65 live in an age-appropriate property

The impact of the retirement housing crisis 

Due to the undersupply and un-affordability of age-appropriate homes, many of the UK’s older population have to resort to living in rental properties.  

The number of older private renters is at an all-time high. With renters aged 75 and over spending almost half of their income on rental fees, they are prime victims in the cost-of-living crisis. 

Unfortunately, private rentals are the most likely type of housing to fail the government’s own standard of a ‘decent home’, with almost a quarter qualifying as non-decent. 

Additionally, many older people are living in large family homes that they’ve been in for decades. This not only can affect them negatively through exasperating loneliness, but also can be difficult to move around and look after as their health and mobility decline. 

High numbers of older people in age-inappropriate housing places a great burden on healthcare services. Public Health England statistics show that around one in three adults over 65 who live in an age-inappropriate will have at least one fall a year and around half of people aged 80 and over fall at least once a year. Injuries from falls alone costs the NHS £2bn annually. With high quality, age-appropriate housing, the risk of falls can be minimised, reducing the NHS time and resources needed to support the elderly. 

In 2020-2021, patients aged 70-74 made up the highest number of hospital visits, accounting for 9.2% of the total patients. With the NHS waiting list at over 7 million ; a solution is needed that enables older people to live in properties better suited to their health and mobility requirements. This would take the pressure off the already struggling health system.   

The UK needs private enterprise to step in and create a new solution that enables older people to live happily and healthily in affordable, age-appropriate properties, whilst benefitting every stakeholder. Evidence shows that this will not only improve the lives of our ageing population, but it will support our NHS for years to come, and enable the UK to thrive. 

The AHH solution 

Through the delivery of high-quality, affordable age-appropriate communities, AHH is providing a solution for the UK’s ageing population. 

Our Shared Ownership model allows homeowners to part-buy and part-rent a property. These properties therefore have lower deposits, and are more affordable than traditional retirement living homes. This enables the elderly population to unlock equity from their previous property and make the most of their retirement in a home that’s suited to their needs. Typically, our homes are up to 50% more affordable than traditional retirement living, though our shared ownership model. 

Our six Platinum Skies shared ownership communities have already enabled over 550 older people to live comfortably in age-appropriate housing, whilst reducing their overall cost of living by at least £1,530 per person, per year. This is more than the cost of providing 5 years’ electricity for a one-bedroom flat. 

Our Shared Ownership communities are supportive, vibrant communities where our impressive group of Community Teams go above and beyond to get to know every homeowner on an individual level. Through this, they can provide the support each homeowner needs, but also help them make new friends and embed them into a community where they feel valued and have purpose. 

The range of supportive services we provide does more than better the quality of life for our homeowners, it also deals directly with some of the corrosive impacts that loneliness can have in terms of both mental health and physical health. With our community support facilities, like on-site Community Managers and a range of activities, events and clubs, we are able to reduce the burden that an ageing population has on both the NHS and local authority services. In fact, it is estimated that the average older person living in retirement housing saves the NHS and social services £3,490 per year compared to those living in rental accommodation and age-inappropriate housing on the public market.

Solving the Pension Fund problem

It is well documented that pension funds are in short supply of assets suitable for delivering on liability-driven investments. Our shared ownership communities are helping to change the supply-demand imbalance. AHH part-own part-rent tenure generates long-dated, inflation-linked, secure rental income streams while creating remarkable communities that address affordability, isolation and loneliness issues. It’s a win-win situation for pension funds and pensioners alike.

In summary

AHH is the UK’s leading provider of Shared Ownership Retirement Living.

Our end-to-end platform creates shared ownership communities for older people and securitised income for pension funds:

Our origination and delivery platform delivers highly effective planning outcomes and ensures the quality and efficiency of development projects.

Our customer platform specialises in the marketing and sales of affordable housing and lifestyle solutions for older people, achieving industry-leading sales rates for new and pre-loved homes.

Our capital markets team and regulated housing association packages and sells securitised income to the pension funds and insurance market, maximising asset values.

We deliver solutions that are a win-win for all.