News release

Later living industry faces £30bn bill by 2025

JLL says Baby Boomer population will need an additional 75,000 homes and 30,000 care home beds

May 23, 2022

Eleanor Parry

Communications Manager, JLL
+44 7719 004580

Rising costs for later living housing and care, and an ageing population, mean the UK faces a £30bn shortfall in 2025.

A generation of Baby Boomers in retirement will see the over 65s population hit 13.6m, requiring an additional 75,000 later living homes and 30,000 care home beds over the next four years, JLL research has found.

This additional supply, to simply maintain the same level of provision to the growing over 65s age group, will require some £30bn in investment. Add to that a further £25bn annual bill to fund the care industry.

Over the next four years, growth in the over 65s age group will contribute 93% of the total population uplift. In contrast, over the last four years, just 7% of new homes were specialist later living homes for older people. As a result, the vast majority of new housing supply risks neglecting the needs of older people.

In 2025, the youngest Baby Boomers will enter retirement age, facing a later living housing and care market in crisis. The oldest of this age group, who may require greater levels of care and support, will be affected by a shrinking care home market, which is increasingly being replaced by Integrated Retirement Communities (IRCs).

Currently the private sector provides the bulk of new homes, with retirees paying on average £550k for housing and care.

The Baby Boomers approaching retirement are in the wealthiest age group, typically demanding a higher-end product. But, changing demographics and rising costs mean there is a large opportunity for mid-market products, for future generations which could rise to make up half of the market by 2050.

Simon Hodson, head of UK healthcare at JLL said: “The numbers show the true scale of the need for housing for older people and are a call to action to the government and the industry. Failure to act now will see older people risking loneliness in homes that may need retrofitting and could become dangerous if not maintained.

“We see great potential for the small, but growing group of Integrated Retirement Communities. This enormous demand is an opportunity for the industry to grow and evolve.”

Emma Rosser, research associate at JLL, said: “The challenge for the industry will be to diversify while also scaling. With current consumer costs exceeding average wealth, there will be a need for more affordable housing options and different tenures across the country.

“By 2050, when one in four people will be over 65s, the mid market has the potential to grow to half the sector. While an overhaul of the restrictions may be required, the best solutions will also be nuanced and call on a range of providers and specialities.”


About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 100,000 as of March 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.