Integrated retirement communities are leading the way in price growth in the later living sector, according to Knight Frank.

Knight Frank’s Seniors Housing Price Index in this year’s Senior Housing Annual Review shows an IRC scheme with a Deferred Management Fee has risen by more than 22% over the last five years, compared to just 14% for Retirement Housing stock and 17% for IRC’s with no DMF.

Knight Frank’s Seniors Housing HPI draws on the analysis of over 36,000 seniors housing transactions which have taken place since 1995.

Lauren Harwood, Associate in the Seniors Housing team at Knight Frank, said: “Performance across the sector has largely been in line with average house price growth over the last five years, though this is predominantly due to the exceptionally strong performance of the residential property market through the pandemic.

“Given rising mortgage costs and constraints around lending, it is likely we are entering a period of price outperformance relative to the mainstream housing market, with older, wealthier downsizers tending to be less constrained by mortgage debt.”

People aged over 65 hold an estimated £1.5 trillion in property equity, according to Knight Frank.

The analysis found average new build sales for senior housing schemes have been increasing over the last two decades with the value of an average transaction rising from £133,345 before 2000 to £381,550 after 2020.

Harwood added: “We are seeing a significant amount of investment into the IRC part of the market. This segment is widening in terms of propositions, tenure options, locations and price points. IRC schemes are scaling up, with more being built in urban areas and an increasing focus on the mid- and upper-market.”

Knight Frank said IRCs were becoming increasingly popular with buyers seeking later living communities that offer integrated onsite lifestyle amenities such as restaurants, bars, gyms and cinemas alongside discreet personal and domestic care that can be provided within the home if needed.

Riverstone Kensington is one example of a recently launched IRC offering offers 190 apartments for sale, and residents having access to 24/7 concierge, a fitness studio featuring E-GYM equipment, a vitality pool, spa, and treatment rooms. A new restaurant run by the acclaimed chef and former MasterChef judge Robin Gill is also available.

Riverstone is opening its second scheme in Fulham this month offering one-, two- and three-bedroom apartments on a riverside location.