UK's over-65s demand bungalow renaissance after plummeting build rates, reveals McCarthy Stone

LONDON, March 8, 2021 /PRNewswire/ --

• Just 1,833 new bungalows were built in 2020, a fall of 23% compared to 2019 and less than 1% of new homes built
• This is down 80% from the 9,347 bungalows built in 2000
• However, 70% of over-65s would consider moving to a bungalow, an increase from 60% in 2019
  - This is equal to 8.4m people, an increase of 1.2m from 2019
• 71% of over-65s also say there should be more bungalows built for older people (2019: 65%)
• McCarthy Stone is one of few companies developing new bungalows, and was granted planning consent for a development of 49 bungalows in Woodhall Spa, Lincolnshire in January

The number of bungalows being built in the UK has collapsed and is falling every year with just 1,833 bungalows built in 2020, warns McCarthy Stone, the UK's leading developer and manager of retirement communities. This is equal to less than 1% of the new homes built in 2019/20^[1].  

In 2000, 9,347 bungalows were built, 80% more than today's level. The drop is also noticeable in more recent years. In 2018, 2,418 bungalows were built, falling to just 2,384 in 2019^[2].

However, research by McCarthy Stone has found that demand for one-level living is on the rise: 70% of over-65s would consider moving to a bungalow^[3]. This is equal to 8.4m people across the UK and indicates that in recent years, bungalow building rates have actually moved in the opposite direction to demand^[4].

This represents a 10-percentage point increase in demand since 2019^[5] highlighting the ever-growing appeal of low-storey housing in later life. The impact of lockdown and the COVID-19 pandemic may have contributed towards older people considering moving to a more suitable property, including bungalows.

The appetite for bungalows is explained by multiple factors, including the desire to live on one level (57%), the easier maintenance (43%) and being much better suited to older people (39%) than conventional houses.

Table I: What do you think you would most like about living in a bungalow?

Source: McCarthy Stone, Find Out Now 2021

Millions of over-65s also support the building of bungalows designed exclusively for older people: 71% agree that there should be more bungalows built exclusively for this group. This is up from 65% in 2019.

Planning rules to date have limited the viability of bungalows, favouring high-density developments instead. McCarthy Stone would like to see current planning legislation reconsidered to help cater for the increasing market demand for housing designed specifically for older people, including bungalows.

This could be in the form of proactive policies, including the allocation of age-restricted bungalow-only sites in Local Plans and the obligation to provide age-restricted bungalows as part of the housing mix in larger scale developments.

John Tonkiss, McCarthy Stone CEO, commented:

"Bungalows are increasingly popular among older generations – they are easier to maintain, are built with older people in mind and help maintain independence for longer given their step free access and easy adaptability – yet bungalow building has collapsed in recent years. The impact of lockdown and Covid-19 is likely leading older people to want to consider living in a more suitable property, and bungalows fit into this category.

"The importance of building more suitable housing for older people has been brought to the fore by the coronavirus pandemic and the UK has the opportunity to redefine how best to support our ageing population, including through the provision of better housing.

"We urge government to consider new planning rules to improve the viability of developing bungalow development, for example, through the allocation of age-restricted bungalows-only sites, allowing more low rise buildings generally, and addressing the viability issues in planning regulations which prevent new bungalow schemes from coming forward."

McCarthy Stone builds to meet demand for bungalows with latest development

McCarthy Stone has been granted planning consent for a development of 49 bungalows and a communal residents' pavilion in Woodhall Spa, Lincolnshire. This follows a development in Olney, Milton Keynes, where construction has just started on 58 dwellings, including 10 bungalows.

With a portfolio of 410 bungalows across 20 sites in total, Woodhall Spa signals McCarthy Stone's ongoing commitment to addressing the undersupply of bungalows by ramping up building of this type of housing so that it becomes a core part of its portfolio. To date, demand for bungalows at McCarthy Stone developments has been consistently high. 

The latest development will consist of nine one-bedroom, 32 two-bedroom and eight three-bedroom bungalows, set within tranquil green spaces. Within the development there will also be a communal pavilion including a homeowner's lounge, kitchenette and guest suite. The pavilion will back on to views of woodland to the north, while an existing large oak tree becomes a key feature of the site.

The bungalows are located in Woodhall Spa, a picturesque former spa town and civil parish in Lincolnshire. The development sits close to a range of restaurants and local shops in the town centre providing easy access to amenities for homeowners, as well as green spaces, a bowling green and open-air swimming pool, all at Jubilee Park.

About McCarthy Stone 

McCarthy Stone is the UK's leading developer and manager of retirement communities, with a significant market share. The Group buys land and then builds, sells and manages high-quality retirement developments. It has built and sold more than 58,000 properties across more than 1,300 retirement developments since 1977 and is renowned for its focus on the needs of those in later life.

There is growing demand for retirement communities. There are currently 12.2 million people aged 65 or over, rising to 17.4m by 2043, representing a 43% increase. For those aged 85 or over, the increase will be larger, from 1.6m to 3.0m, representing an 87% increase. Research shows that 33% of those aged 65 or over are interested in moving, equating to c.4 million people. 

McCarthy Stone has two main product ranges - Retirement Living and Retirement Living PLUS - which provide mainly one and two-bedroom apartments across the country with varying levels of support and care for older people. Retirement Living developments provide independence in private apartments designed specifically for the over-60s, as well as facilities such as communal lounges and guest suites that support companionship. Retirement Living PLUS developments, which are designed specifically for the over-70s, offer all of this plus more on-site facilities such as restaurants, well-being suites and function rooms. Importantly, they also provide on-site flexible care and support packages to assist those needing additional help.

All developments built since 2010 are managed by the company's in-house management services team, providing peace of mind that it will look after customers and their properties over the long term. This is a key part of how McCarthy Stone seeks to enrich its customers' lives. This commitment to quality and customer service continues to be recognised by residents. In March 2019, the Group received the full five star rating for customer satisfaction from the Home Builders Federation for the fourteenth consecutive year - making it the only UK developer, of any size or type, to achieve this accolade.

For further information, please visit www.mccarthyandstone.co.uk.

^1. MHCLG reported that 243,770 homes were delivered in 2019-20
^2. NHBC
^3. February 2021 research carried out by McCarthy Stone, in conjunction with Find Out Now, surveyed 2,062 over-65s 
^4. According to ONS figures, cited by Age UK, Later Life in the UK 2019 
^5. 2019 research carried out by McCarthy Stone, in conjunction with YouGov

Related Links

https://www.mccarthyandstone.co.uk