IVBN: Investing in housing is investing in care
IVBN: Investing in housing is investing in care
This column was originally written in Dutch. This is an English translation
An ageing population is often seen as a healthcare issue. But without suitable housing, the healthcare system will grind to a halt. That is why investing in housing is also investing in a future-proof healthcare system.
By Simon van der Gaast, Senior Policy Adviser, IVBN
Where older people live is at least as crucial to the future of care as how that care is organised. Without suitable housing, the pressure on care homes, informal carers and professionals will continue to mount. The greatest innovation in care may well lie in how and where people live.
The challenge is immense. It is estimated that 290,000 additional homes will be needed by 2030 for older people and those requiring care. This primarily involves housing types such as step-free homes, clustered housing and care-adapted flats. These enable people to live independently for longer, with support close at hand and space for socialising.
These housing options are more than just a roof over one’s head. They promote independence, reduce loneliness and delay the need for more intensive care. Because residents live closer to one another, care can be organised more efficiently and scarce staff can be deployed more effectively. In this way, they contribute to a better quality of life and a more accessible care system.
To get this movement off the ground, quality is crucial. Many older people are not primarily looking for care, but for an attractive home in a good location. By adding these homes, they are more likely to move, thereby creating a flow of people moving on. The move is particularly likely if the accommodation on offer is independent, affordable and well-located, with amenities and opportunities to socialise nearby. Senior living is all about quality of life, with care close by when needed.
Local decisions shape the challenge
It is precisely now that the important decisions are being made. Local authorities are determining what types of housing are needed and for whom. In doing so, they are deciding whether there will actually be space for housing for older people and residential care schemes. If that space is lacking, we are building today a housing stock that will be unable to meet tomorrow’s care needs. This is also relevant for the wider housing market. Building for older people can trigger several waves of people moving house, as older people often leave behind a larger family home when they move.
Long-term capital as a partner
This challenge cannot be borne by the government and care institutions alone. Long-term private capital is also needed. Care property has now become a mature investment category, with stable cash flows, long-term operation and growing interest from investors. The combination of financial stability and social impact makes it relevant for pension funds and insurers.
To fulfil this role, investors must be involved in new developments at an early stage. Without insight into projects and without a clear place in plans, investments will not materialise, even if the capital is available.
Prerequisites for acceleration
Investment in healthcare property does not happen by itself. Without concrete projects and clear frameworks, the willingness to invest remains a promise on paper. Differences between local authorities and a lack of clarity regarding housing types make it difficult to secure capital. Greater consistency in definitions helps, and it is important that this clarity is established quickly. Once it is clear what is meant by, for example, care-suitable housing, there is greater certainty. This makes it easier to develop projects more quickly, keep them more affordable and enables investors to assess them more effectively.