32 | 55+ DEVELOPMENT WORDS |Margaret Wylde
BUSINESS Britain beckons
The United Kingdom has a robust 55+ population and a rapidly growing demand curve for housing for people aged 60 and above. In the second stop of her tour of 55+ housing opportunities in Europe, OPP’s senior living columnist Margaret Wylde casts an experienced eye over this wealthy north European country whose median age profi le is expected to increase by 4.3 years from 38.6 years to 42.9 years by 2031. But, how big a market is it?
T
he United Kingdom, which encompasses England, Scotland, Wales and Northern Ireland, is
experiencing an ‘age quake.’ For the fi rst time ever, its population consists of more 65+ residents than those under 16 years of age. The fact is, if you sell any form of housing in the UK, you are serving the 55+ market. The 45+ demographic is expected
to make up 47.14% of the population by 2031. Between 2001 and 2010, the UK’s 55+ population group grew
by almost 1.7 million residents, and is already more than 28% of the total population (Exhibit 1). An increase in life expectancy is also driving this population shift. The UK has reached a record level of life expectancy – 78 years for males and 82 years for females (Exhibit 2). And, life expectancy for those who are now 65 has increased to an additional 18 years for males and 20 years for females. This is also the smallest gap, 4 years, in life expectancy between males and
females across the 27 member states of the European Union. At birth, male life expectancy is 87%
of the life expectancy for females, but for men who are 65 years of age, this difference has narrowed so that males’ life expectancy is 95% of females. The United Kingdom has also seen
a fi ve-fold increase in the estimated number of centenarians between 1980 and 2010. And, as the 50+ age group has become a larger segment of the
Exhibit 1. Total Population of Great Britain and by Age Groups Among 55+ in 2005 and 2011 Percent of Total Population and Percent Growth of Each Age Group
Age Group
Total Population Total 55+ Age 55-59 Age 60-64 Age 65-69 Age 70-74 Age 75-79 Age 80-84 Age 85+
2001
49,449,700 13,063,900 2,832,800 2,395,500 2,160,100 1,952,900 1,644,700 1,119,000 958,900
Percent of Total
2010
26.4% 5.7% 4.8% 4.4% 3.9% 3.3% 2.3% 1.9%
52,234,045 14,717,056 2,970,566 3,140,171 2,434,635 2,052,318 1,668,360 1,253,170 1,197,836
Exhibit 3. Number of Households and Average Yearly Income for 50+ Age Groups in Great Britain
Age Group Year 2005
2007 2009
50 to 64 Income £35,113
£36,889 £38,678
Number of Households
6,400,000
6,450,000 6,740,000
65 to 74 Income £18,040
£21,739 £24,107
Number of Households
3,310,000
3,130,000 3,310,000
75+ Income £13,795
£15,896 £17,212
Number of Households
2,910,000
3,390,000 3,500,000
Percent of Total
If you are interested in a country or are a developer of 50+ housing who wants to be included in an article about a specifi c country, please contact us via: Mark Jeff ery at mjeff
ery@promatura.com
population, its average yearly income has increased as well. The largest segment of this population, those 50 to 64, has seen an increase in average income of £3,565 from 2005 to 2009. Exhibit 3 shows the income for each segment and the number of households for each age group. The UK has international appeal
28.2% 5.7% 6.0% 4.7% 3.9% 3.2% 2.4% 2.3%
too. While the country is not the 55+ tourist destination that Spain is (see last month’s review in OPP of the Spanish 55+ sector), the United Kingdom attracts a large number of foreign residents. From 2004 to 2010, the percentage of
total population that is foreign born has increased from 10.9% to 14.6% (Exhibit 4). And this increase, interestingly, comes from the immigration of residents from outside of the European Union. 70%, or 4.5 million UK residents, come from countries outside of the European Union (Exhibit 5).
Exhibit 2. Great Britain Life Expectancy at Birth and Age 65, 2008 - 2010
www.opp.org.uk | JANUARY 2012
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