‘Trailblazing’ proposals for the future of leasehold launched by retirement community sector
Trailblazing proposals for the future of leasehold in the retirement community sector have been launched today by an industry body, heralding the way for a new generation of housing options for older people.
ARCO, which represents the UK’s ‘Integrated Retirement Community’ sector, has unveiled a package of measures to enhance the rights of owners.
The government recently announced the launch of an Older People’s Housing Task Force to look at expanding the housing-with-care sector, chaired by Professor Julienne Meyer of City University.
ARCO is calling on the Government to adopt its ‘Leasehold Plus’ proposals immediately in the Leasehold Reform Bill that has been earmarked for the King’s Speech later this year.
The Leasehold Plus model would:
Extend the reach of consumer protection so that – uniquely in the UK property sector – every sale of a unit in an Integrated Retirement Community scheme is subject to full protection under consumer law
Improve dispute resolution mechanisms, including extending the remit of Ombudsmen
Include flexibility to tailor leases, enabling them to be kept up to date and respond to changing customer preferences.
ARCO members who operate Integrated Retirement Communities are already subject to a stringent Consumer Code, and ARCO is calling for the protections of the ARCO Consumer Code to be extended to all customers moving to a retirement community.
Older people’s housing has risen up the Government agenda in the last eighteen months, with three different white papers committing to its expansion. Integrated Retirement Communities improve health and wellbeing, reduce loneliness, and save money for the NHS and social care.
At present, only around 0.6% of the older population in the UK live in Integrated Retirement Communities, which provide housing-with-care and sit between mainstream housing and care homes. The average age of residents is 83.
ARCO says greater consumer protection is one of the key policy changes needed to grow this type of provision, which currently lags far behind that in other countries. Provision is 10 times higher in New Zealand, Australia and the US.
In New Zealand, strong consumer protection was one of the central planks of the 2003 Retirement Villages Act which has spurred the sector’s growth.
Sally Ireland LLM, Director of Legal and Compliance at ARCO, said:
“Integrated Retirement Communities have long led the way on consumer protection, and our proposals will set a new benchmark for the rights of residents who share communal facilities.
“Our proposals would give the strongest protection of any form of tenure to residents in Integrated Retirement Communities and people living in communal buildings more widely.”
“What we are proposing will not cost the government anything, and we are calling on the Government to incorporate the proposals into the Leasehold Reform Bill that is expected to be announced in the King’s Speech.”
Kyle Holling, Partner at Trowers & Hamlins law firm, said:
“We are delighted to be involved in such a potentially ground-breaking proposal for the sector. Leasehold Plus presents an exciting opportunity to strengthen the rights of older people in Integrated Retirement Communities.
“Building on the ARCO Consumer Code, the proposals put consumer law right at the heart of the Integrated Retirement Community sector.
“Following the example of countries like New Zealand, where consumer protection has been pivotal to the expansion of this form of housing, we hope the new proposals will spur great growth in the UK.”
‘Leasehold Plus: The next step for home ownership in IRCs’ can be downloaded here.
ARCO is the main body representing the Integrated Retirement Community sector in the UK. ARCO was formed in September 2012 by its founder members. Our members include both private and not-for-profit members, comprising the majority of operators of Integrated Retirement Communities. Including our members there are over 100 organisations associated with ARCO, including ARCO Affiliates, Partners, Strategic Partners and members of the ARCO Accelerator Programme.
The Government announced on 4 April 2023 that Professor Julienne Meyer, a leading expert in care for older people, will chair the Older People’s Housing Taskforce, spearheading work to support the growth of a thriving older people’s housing sector across the country. The taskforce will work across housing, heath, and care sectors to drive an increase in the volume and range of housing options and make recommendations to the Government. For more information, see: Government unveils taskforce chair to boost older people’s housing – GOV.UK (www.gov.uk)
The government committed to extending consumer protection for customers buying properties in IRCs in 2019 when it committed to implement the majority of the Law Commission’s recommendations made in its event fees report of 2017 (link here Government accepts majority of Commission’s event fees recommendations – Law Commission). However these measures have never been made law.
