Taskforce calls for 10% of Affordable Homes Programme funding to target older people

It said that while capital is available for affordable housing options, such as the AHP and CASSH, England needs to “get the conditions right” to unlock it as the funds do not currently sufficiently incentivise affordable housing providers to bring forward housing with support and care services. 

The report said: “To maintain and potentially grow social and affordable options at the lower end of the market will require increased capital (through the MHCLG Affordable Homes Programme and the DHSC CASSH programme) combined with revenue funding to enable the right level of support for older customers.”

According to the report, an estimated 30,000 to 50,000 new later living homes (LLH) are required per annum in England to meet the needs of the ageing population, but only around 7,000 are built a year. 

The taskforce also made recommendations aimed at enabling OPH to be expanded at scale, while ensuring that it is affordable to live in and viable to finance, build and operate.

Towards this aim, central government should drive progress by mandating Homes England to support the expansion of OPH including social and affordable housing for senior citizens, it said. 

“Homes England has a crucial role to play in supporting the OPH/LLH sector to accelerate provision by using the full range of its tools and resources – both as an enabler and direct funder,” the taskforce said.

The report also said that MHCLG should review and expand funding for the Older People’s Shared Ownership Scheme (OPSO) for senior citizens who are unable to afford the full price of a new property in an OPH development.

“The review should ensure the scheme is attractive for both customers and investors and should include looking at the grant rates for OPSO, the current maximum annual income thresholds, the maximum equity stake, and rent chargeable at different equity shares to avoid cliff edges for consumers, while maintaining viability for providers,” the report said.

The report made 10 core recommendations in total.

These included calls to: standardise the definitions of OPH; incentivise a wide range of OPH options; ensure more housing is designed for later life; create age-friendly, dementia-inclusive, faith and culture-sensitive communities; build consumer confidence; and strengthen planning permission.

Other recommendations concerned the need to: expand OPH at scale and ensure it is affordable to live in and viable to finance, build and operate; establish a national information platform and local hubs; enhance innovation, research and professional development; and create collective leadership to drive change.

The report said: “Achieving the aims set out in this report is not a quick and easy task. It will take time, ambition and commitment by all parties.

“It is our hope that the work of the taskforce – and the contents of this report – provide clear and actionable solutions and stimulate the momentum to drive progress forward.”

Sector reaction

Sarah Jones, chief executive of Anchor, said the taskforce made “some enormously valuable” recommendations for increasing the supply of housing for older people.

“With one in four of us expected to be over the age of 65 by 2038, it’s crucial government supports the development of more socially rented housing dedicated to older people and 10 per cent of Homes England and GLA’s capital funding budgets goes to the construction of social rented housing for older people,” she said.

“Government should now move quickly to ensure planning reforms support development of older people’s housing through a new planning classification, an overarching strategy and more funding for housing with care and 10 per cent allocation in local plans for housing for older people.

“Planning for housing for older people should also have a presumption in favour of additional density. More homes are often needed to make schemes viable as lettable space is reduced by essential communal spaces and facilities.”

Mario Ambrosi, chair of the Housing and Ageing Alliance, whose members worked closely with the taskforce, said it is “very welcome” that many of their asks are reflected.

“Publication of the taskforce’s report is a hugely important step forward in addressing the urgent need for more appropriate housing for our ageing society,” he said.

“Having a target of 10 per cent of delivery through the Affordable Homes Programme for older people’s housing could make a real difference for the many thousands of people who would like to move but are unable to do so because of a lack of options. So too could the focus on ensuring planning guidance encourages delivery.

“We were also pleased to see the emphasis in the report on the need for information, advice and advocacy around housing and care options in later life.

“It is now crucial the recommendations are implemented quickly, and that government engages more widely and with older people themselves to ensure the needs of everyone, including all older people, are reflected in its housing strategy.”

Theo Plowman, assistant director of policy of the British Property Federation, said the report makes clear that “without renewed and bold energy in housing policy, we risk failing to meet the needs of older people today and in the future”.

He said: “This report provides a roadmap to addressing the long-standing challenges, but its success depends on structures that translate ambition into delivery. The opportunity to make transformational change for older people is here and must be treated with the same ambition within the government’s housing strategy.”