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A Flexible Housing Solution for the Over-55s

As the UK’s over-65 population is projected to grow by nearly 50%, reaching 17 million by 2034, the need for housing solutions that cater to an ageing demographic is becoming increasingly urgent. With retirement and downsizing homes making up only about 2% of the UK’s housing stock, despite 6 million people considering downsizing at any given time, the Horizon model offers an innovative approach that addresses these challenges. Horizon focusses on providing affordable, adaptable, and accessible housing for older adults, enabling them to remain in their local communities while meeting their changing needs over time.

What is the Horizon Model?

The Horizon model aims to provide older adults who wish to downsize with a flexible housing solution that allows them to age in place. Horizon homes are designed to be adaptable, high-quality, and future-proof, meeting the evolving health and mobility needs of residents. The focus is on creating homes that prioritise accessibility, independence, and long-term sustainability.

Key Features of Horizon Homes:

  • One and a Half Storey Design: The homes are designed with one and a half storeys, where all essential living spaces - including the kitchen, lounge, bathroom, and one bedroom - are located on the ground floor. This design ensures that residents can continue to access their main living areas without the need to navigate stairs, reducing the risk of falls and accidents as mobility issues arise with age. It also supports independence, allowing residents to maintain control over their living space.
  • Upstairs Bedroom and Shower Room: The second storey provides an additional bedroom and shower room, giving residents the flexibility to host guests, accommodate caregivers, or provide space for family members. This adaptability is key in ensuring that the home can evolve with the residents’ changing needs, from accommodating visitors to providing private space for caregivers.
  • Assistive Technology: Horizon homes are equipped with smart technologies that promote safety, comfort, and independence. Features such as smart thermostats, fall detection sensors, remote-controlled lighting, and integrated health monitoring systems make it easier for residents to manage their home and stay connected with healthcare providers and family members. This technology also supports age-in-place living by offering real-time health and safety alerts.

The Shared Ownership Model: Flexibility and Affordability

The shared ownership model used in Horizon homes allows older adults to buy 75% of the home while the remaining 25% is owned by an institutional investor. Residents pay rent on the 25% equity they do not own, making this an affordable pathway to homeownership.

Key Benefits of the Shared Ownership Model:

  • Ownership Flexibility: The shared ownership model allows residents to enter the property market at a lower initial cost. They can ‘staircase’ to full ownership over time, gradually purchasing additional shares in the home. This creates long-term financial flexibility and helps older adults build equity over time, without the burden of purchasing a home outright.
  • Equity Release: Horizon homes offer the opportunity to release some of the equity from selling an existing home, providing extra financial freedom. This equity can be used to support retirement savings or other needs, allowing residents to downsize while securing financial stability.
  • Pathway to Full Ownership: Over time, residents have the option to buy out the remaining 25% and fully own their home, offering a clear pathway to complete ownership. This flexibility can benefit residents who want to plan for the long term and build wealth as they age.

Why Horizon Homes Are Important

  • Meeting the Needs of the Ageing Population: The ageing UK population is growing rapidly, with many older adults wanting to stay close to family, friends, and their local communities. Horizon homes offer a way for older adults to downsize without having to leave familiar surroundings, helping to prevent social isolation and enabling residents to remain active in their communities.
  • Future-Proof Design: Horizon homes are built with the future in mind. The flexible layouts and smart technologies ensure that as residents’ needs change - whether due to mobility issues, health problems, or other challenges - the home can adapt. This future-proof design reduces the need for frequent moves or relocation to a care facility, giving residents the ability to live independently for as long as possible.
  • Affordable and Sustainable Housing: The shared ownership model provides a cost-effective way for older adults to secure a home, especially those with limited income in retirement. By only purchasing 75% of the property and paying affordable rent on the remaining share, older adults can manage housing costs more effectively. Additionally, energy-efficient design features help lower utility bills, which is particularly important for those on fixed incomes.
  • Economic and Social Impact: The Horizon model has positive economic and social implications. Downsizing by older adults frees up larger family homes, allowing younger families to enter the housing market. This creates a more balanced housing supply and helps tackle the housing crisis. Furthermore, the equity release from downsizing can be reinvested into the economy, improving financial stability for older adults and boosting local economies.
  • Reducing Fuel Poverty: Horizon homes are built with high energy efficiency in mind. Features such as superior insulation, modern heating systems, and energy-efficient appliances reduce both carbon emissions and energy costs. Many older adults live on fixed incomes, and high energy bills can be a significant burden. Horizon homes help tackle fuel poverty by ensuring residents have lower heating costs and can enjoy greater financial security.

Conclusion: A Comprehensive Housing Solution for the Downsizing Generation

The Horizon model presents an innovative solution to the housing challenges faced by the UK’s ageing population. By providing flexible, affordable, and adaptable homes designed to meet the current and future needs of older adults, Horizon allows individuals to downsize without sacrificing their independence or comfort. The shared ownership model provides a financially sustainable pathway to homeownership, while smart technologies and energy-efficient designs support residents’ long-term well-being. This model is particularly important as the UK faces a growing demand for housing that meets the needs of an ageing, mobile population. Horizon homes represent a holistic approach to the housing crisis, ensuring that older adults have access to high-quality, affordable, and sustainable homes.

Benefits of Horizon

  • Flexibility for Changing Needs: Horizon homes are adaptable, designed to meet both current and future health needs. The one and a half storey layout reduces mobility issues and supports ageing in place, and the assistive technology ensures safety and comfort.
  • Affordable Housing: The shared ownership model makes it easier for older adults to enter the housing market at a lower cost, while also providing a clear pathway to full ownership over time. The rent on the remaining equity makes it affordable for those on limited or fixed incomes.
  • Energy Efficiency: Highly energy-efficient homes reduce heating and electricity costs, addressing fuel poverty - a critical concern for many older adults living on fixed incomes. This contributes to both financial savings and environmental sustainability.
  • Social and Economic Benefits: By helping older adults downsize, the model frees up larger family homes for younger families, contributing to a more balanced housing market. Additionally, it offers a way for older adults to release equity, which can be used to support retirement or reinvested in the local economy.
  • Independence and Community: Horizon homes enable residents to remain in their local communities, fostering social connections and helping reduce isolation. The homes are designed to promote independence and dignity as people age.

Challenges

  • Rent on Remaining Equity: Some older adults may find the rent payments on the 25% equity they do not own challenging, particularly if their income is fixed or limited. This could create a financial strain for some residents.
  • Not Widespread Yet: The shared ownership model may not be widely available across the UK, limiting the accessibility of this solution. The availability of Horizon homes may depend on specific regional markets or government support.
  • Upfront Costs: Although affordable, the 75% ownership cost may still be out of reach for some older adults who lack the necessary equity or savings. For those who are asset-rich but income-poor, this could limit access.
  • Scalability: The Horizon model is still relatively new and will require significant scalability and investment to meet the growing demand for housing among the ageing population. Its long-term success will depend on its ability to expand and adapt to diverse demographic needs.

Summary

Overall, the Horizon model represents a promising solution to the housing challenges of the UK’s ageing population, offering affordable, adaptable, and sustainable homes for the over-55s, with the potential to reduce fuel poverty, support independence, and create more balanced housing markets.