UK Seniors housing sector evolving and growing
Knight Frank report points to maturing senior living market
9 December 2025
The UK seniors housing market continues to demonstrate strong long-term growth potential, underpinned by evolving investor confidence, resident-centric design, and a clear shift towards institutional governance, according to Knight Frank’s 2025/26 Seniors Housing Trading Performance Review.
The report highlights the sector’s growing maturity as it evolves into a recognised asset class, with demand driven by demographic trends and increasing expectations around functionality, sustainability, and community integration.
With the proportion of the UK population aged 65 and over forecast to reach 25% by 2040, the current shortfall in age-appropriate housing is seen as a key opportunity for expansion. Despite ongoing challenges, operators are expressing confidence, with 50% of those surveyed expecting strong demand over the next five years.
A growing focus on rental models is attracting capital, supported by improved financing conditions following base rate cuts. Knight Frank expects this to fuel mergers and acquisitions into 2026. The retirement of the first baby boomers is also seen as a major driver, releasing an estimated £5 trillion in housing wealth and £5.5 trillion in pension assets into the market.
The review emphasises the role of design in delivering housing that supports independent living and adapts to changing needs. Every Integrated Retirement Community (IRC) scheme surveyed offers access to outdoor space, while the majority are located in suburban or urban areas with strong transport and community links.
Notably, over half of private for-sale schemes now include communal areas that are open to the wider public, reinforcing efforts to integrate these developments into local communities.
Flexibility of care provision is another priority, with IRCs increasingly designed to accommodate future health needs while promoting wellbeing through scalable support services.
Environmental, Social, and Governance (ESG) principles are also becoming embedded in development strategies. Around 85% of operators cite ESG as important or very important, driven by both investor expectations and reputational considerations.
Sustainability features now common across new developments include electric vehicle charging points (targeted or installed by 92% of respondents), heat pumps (67%), and solar panels (58%). Biodiversity net gain and green space provision are also widely adopted.
The social impact of seniors housing is receiving greater recognition, with evidence suggesting annual cost savings of up to £6,500 per resident in health and social care spending, further reinforcing its value to the wider public sector.
Tom Scaife, Partner and Head of Seniors Housing at Knight Frank, said: “Consolidation isn’t just changing ownership; it’s building the capacity to deliver what the sector promises—strong returns paired with meaningful social impact.”
Knight Frank’s annual review covers trading performance across the UK’s largest IRC operators, analysing data on occupancy, sales, and rental trends to provide insight into the operational outlook for the sector.
