As the UK’s population ages and more over-55s look to downsize, there’s an increasing demand for integrated retirement living communities (IRCs). While well-established in countries like the US and Australia, IRCs are still relatively new to the UK market. However, significant growth in this sector is predicted over the coming years.
What are Integrated Retirement Living Communities?
IRCs typically offer spacious rental apartments with private bathrooms and living areas, often including individual kitchens. From a planning perspective, these fall under the C3 Use Class, usually without extensive care packages. The ‘community’ aspect comes from premium shared amenities like dining facilities, lounges, and leisure options such as bowls greens, cinemas, tennis courts, spas, and wellness centres. These services are typically covered by a service charge included in the rental fee.
The appeal of countryside locations
Many potential IRC residents are drawn to the idea of living in picturesque rural settings, particularly in converted stately homes or historic buildings. These properties offer a unique blend of prestige, history, and natural beauty that can command premium prices – up to 20% higher than similar-sized properties in the same area.
Examples of successful IRC conversions include:
- Taymouth Castle, Perthshire: This historic castle is being transformed into a clubhouse for a community of 145 new private residences, with prices starting at £4 million.
- Riber Castle, Peak District: Recently converted into 26 luxury apartments, with prices starting at £450,000 for a 2-bedroom unit.
Challenges of countryside IRC development
While the countryside luxury living dream is appealing, developing IRCs in rural locations presents significant challenges:
- Initial Capital Investment: Restoring and converting historic properties requires substantial upfront costs. For example, over £100 million has been spent on Taymouth Castle’s restoration so far.
- Planning Hurdles: Many local planning authorities have policies against new dwellings in ‘unsustainable’ locations outside defined settlements. Overcoming these objections often requires careful negotiation and strong justification.
- Heritage Considerations: Converting listed buildings or those of historic interest requires balancing preservation with modern living requirements. This can limit the number of apartments that can be created within the existing structure.
- Viability Concerns: The costs associated with maintaining grounds and providing high-quality amenities often necessitate a minimum number of units to make the IRC model viable.
Strategies for successful IRC development
Despite these challenges, there are several strategies that developers can employ to increase their chances of success:
- Focus on Heritage Restoration
While local planning policies may generally oppose new rural dwellings, there’s often support for projects that preserve and find new uses for historic buildings. The National Planning Policy Framework (paragraph 84) encourages the reuse of heritage assets for their ‘optimum viable use’. This can provide a strong argument for IRC developments in historic properties.
- Consider ‘Enabling Development’
In cases where the conversion of the main building alone isn’t financially viable, developers might propose additional new-build units as ‘enabling development’. This approach requires demonstrating that:
- The IRC is the optimum future use for the heritage asset
- No other viable uses would ensure long-term preservation
- The proposed conversion is acceptable in heritage terms
- Additional new-build accommodation is critical for the IRC’s viability
- Without the IRC, the heritage asset would likely deteriorate further
This strategy can be particularly effective if there are existing modern buildings on the site that detract from the historic asset’s setting. Replacing these with sensitively designed new apartments might be viewed more favourably by planners.
- Prepare for a Long Process
Developing an IRC in a rural setting, especially involving historic buildings, requires patience and persistence. Developers should be prepared for:
- Extended negotiations with local planning authorities and Historic England
- The need for expert input on valuations, alternative uses, and costings
- Potential ‘back and forth’ discussions on viability and preservation issues
- Address Ecological Concerns
All such planning applications now need to provide a 10% biodiversity net gain (BNG), preferably on-site. This requires:
- A Preliminary Ecological Assessment (PEA)
- A Preliminary Bat Roost Assessment (PRA)
- Potential further surveys for protected species (e.g., bats, which often inhabit old buildings)
Developers should factor in the time required for these assessments, including potential seasonal constraints for certain surveys.
- Be Prepared for Additional Challenges
Other issues that may arise during the development process include:
- Parking and highways matters
- Local politics and stakeholder engagement
- Drainage and infrastructure concerns
- Programming and implementation complexities
The future of countryside IRCs
Despite the challenges, integrated retirement living communities in rural settings represent an exciting opportunity for property developers. The combination of an ageing population, increasing demand for high-quality retirement housing, and the unique appeal of historic countryside properties creates a potentially lucrative market.
However, success in this sector requires significant investment in time, money, and expertise. Developers need to be prepared for:
- Substantial upfront capital costs
- Extended planning and development timelines
- The need for specialist knowledge in areas such as heritage conservation and rural planning policy
- Potential challenges in achieving financial viability
For those willing and able to overcome these hurdles, the rewards can be significant. Successful IRC developments can provide long-term, stable returns while also contributing to the preservation of important heritage assets and meeting a growing societal need.
As the UK continues to grapple with its ageing population and housing challenges, IRCs are likely to play an increasingly important role. Developers who can successfully deliver high-quality retirement communities in desirable rural locations will be well-positioned to capitalise on this growing market.
Conclusion
In conclusion, while developing integrated retirement living communities in the countryside presents numerous challenges, it also offers unique opportunities for innovative and patient developers. By carefully considering the planning, heritage, and financial aspects of these projects, it’s possible to create successful IRCs that benefit both residents and investors while preserving important pieces of the UK’s architectural heritage.
DRK Planning Ltd is a multi-disciplinary planning and development consultancy practice founded by David Kemp. With more than 20 years of experience in planning consultancy. DRK Planning provides a diverse range of expertise, adding value to owners and businesses through a wide range of property services.
If you have an enquiry about Permitted Development Rights – email info@drkplanning.co.uk we’re happy to discuss your project in an initial brief introductory call.