Homes fit for ageing - in practice Lex Cumber Business Development Director October 2016
Offering smarter solutions • We’re specialists • Customers value our advice - we share ideas and expertise • Partnership is our M.O. • 92% of current projects are from returning customers • Reputation is our currency
What we do • Land finding and acquisition • Project feasibility • Demographic and care gap analysis • Planning management • Funding • In-house manufacturing • Design and build • Aftercare
Some of our customers
Delivering projects nationally Healthcare Design Awards Finalist 2011 and 2016 • Care Homes • Extra Care Best Healthcare Project Finalist 2015 and 2016 • Retirement Living • Care Villages • Specialist Care
So, where’s the sector today?
Demographic trends – driving future demand United Kingdom 65 years and older population, 1901 – 2086 Source: Laing and Buisson, 2015. Care for Older People. UK Market Report and Update from HPC – Healthcare Property Consultants, 2015
Some headline market numbers – UK housing stock All housing stock – 23,000,000 units Sheltered/Retirement housing – 500,000 units 80% affordable rent/20% for sale Assisted Living – 60,000 units Growth – approx. 10% per annum 80% affordable rent / 20% for sale Care Home beds – 450,000 units
Retirement Living is a matter of supply • In 2011 only 1% of people aged 60+ moved into retirement housing in the UK • In 2014 only 1,919 new retirement properties were registered with NHBC Source: International Longevity Centre – UK (ILC- UK) “Generation Stuck: Exploring the Reality of Downsizing in Later Life” 2014
We are slow starters
The sector is unbalanced 70% 66% 60% 50% 40% 30% 20% 15% 10% 8% 10% 1% 0% 0% Affordable rent Shared ownership Middle market rent Middle market High end rent High end purchase purchase Approximately 60,000 units
A sector in a state of flux • Social care sector is fragmented • Extra Care & new care models are on the march • There is a profound funding crisis • There is some great innovation • Social care is low on the political agenda
Reasons to be cheerful 1, 2, 3
Castleoak, as a canary in the coal mine? Turnover FY2015 £50 million FY2016 £85 million+ FY2017 £80 million (already secured)
We are seeing… • Significant expansion in the Private Extra Care Market • Strategic desire by the public sector to produce more Extra Care • Extra Care as the ‘profit for purpose’ vehicle of choice • RP and Not for Profit Sector leading in virtually all aspects of provision…but • Lenders very keen to invest Assisted living apartments for sale now on site by Castleoak at Princes Risborough for Anchor Trust
• Care sector development is steady • There’s a profound split between private pay & socially funded • A North / South divide • Care sector re-provision and refurbishment is a big topic • Real shortage of construction labour • Recruitment is the No.1 challenge for care operators Retirement living apartments for sale now on site by Castleoak at Windsor View for Castle Retirement Living
So, what do we need?
A coherent Government strategy? • Government / planning recognition of a nuanced sector - C2 / C3 debate • Tax incentives to downsize • An objective debate about NHS budgets v. Social Care budgets • Political leadership on the longevity revolution • A cultural shirt in attitude towards ‘retirement living’
Where’s the innovation? Abbeyfield Winnersh care home – by Castleoak
Intergenerational living homes More high rise social care Outsourcing of local authority care to ALMO More standardisation and off-site manufacture Smarter use of ICT
Let’s wrap it up
• Our sector is not discretionary • There are a blend of solutions to be enhanced, explored and devised • There is cultural resistance to ‘retirement living ’ • An honest debate about Social Care funding is desperately needed • Socially, the longevity revolution is the most profound challenge of our age
Question time
Lex Cumber Business Development Director Email: lcumber@castleoak.co.uk Tel: 029 2054 8800 www.castleoak.co.uk
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