HCA SW Partnership Event - David Hines - At the Other End of the Housing Ladder, Why Should I downsize? - Workshop Presentation

1. DAVID HINES, EXECUTIVE CHAIRMAN
Older Person’sShared Ownership

2. • Quantum, founded in 1998 asa developer, operator,
investment manager.
• Investing in real estate and social infrastructure.
• Focus on affordable housing and healthcare in
the elderly sector.
• Aligningthe interests of investorsand customers
to deliver the best value.
QUANTUM
Quantum is is the only company in the UK to
have developed affordable elderly healthcare
facilities in a JV partnership with the NHS
Quantum is a strategic development partner
with Welltower Inc. facilitating the delivery
of long term care excellence
Platinum Skies Living Ltd is a registered
social landlord supported and regulated
by the Homes and Communities Agency
Encore Care Homes Ltd manages CQC
regulated care homes that provide elderly
residential, nursing and dementia care
QUANTUM GROUP DNA

3. PROVIDING AFFORDABLE HOMES ACROSS THE SOUTH
• Platinum Skies LivingLimited (PSLL) is a
for-profit Registered Social Landlord with
a focus on the elderly sector.
• PSLLis a member of the Wayfarer
Partnership, a consortium of 17different
registered housing providersworkingin
partnership to deliver affordable homes
throughout the south of England.

4. THE UK’S RAPIDLY AGEING POPULATION
Two million people aged 65 or above will lack informal care from adult relatives by 2030.
4.2
million
People currently
aged 75 or above
6.3
million
Risingby 50% in
lessthan 10years
14,000
2014 2039
People aged 100 or over
will increase6-fold
83,000

5. ASSET RICH / CASH POOR GENERATION
• £1.23trillion of unmortgaged housing wealth is owned by people aged over 65.
• 73%of 65+year olds in the south have a total household wealth of less than £500k.
• The average annual net income for UK pensioners: £25,000 for a couple, £13,000 for a widower.
• The average annual cost of livingin the south east is £13,216.
• There are more than 29 million searches for “How do I pay for my care fees?” each year.

6. KEEP
CALM
AND
CARRY
ON
• A fifth of pensionersover the age of 75 are
livingbelow the poverty line.
• The ‘silent generation’ who lived through the
Second World War (born 1925-1945) are much
more likely to live in persistent poverty than
younger ‘baby boomer’ pensioners.
• On average, the weekly income of over-75s is
£59 less than that of younger pensioners.
ASSET RICH / CASH POOR GENERATION

7. To live independently
in the comfort of
their own home for
aslong aspossible.
“ageinginplace”
WHAT DO OUR CUSTOMERS WANT?

8. Retirement Endof Life
3.2%
96.8%
Could live independently until
end of life if their housing and
care needs are met. But the
supply of affordable age-friendly
supported housing is not
meeting demand.
Require institutional
residential care.Yet a shortfall
of 70,000 care beds in under
10yearsis predicted.
OUR CUSTOMERS’ JOURNEY

9. Happiness
+ + =
WealthHealthHomes
WHAT DO OUR CUSTOMERS NEED?

10. • Only 2%of UK housing is built for retirement; a sharp
contrast to the US(17%)andAu/NZ (13%).
• Just 0.6%of housing in the UK is high quality private
retirement property.
• In 2016, only 5,500 of the 180,000 new homes delivered
were for retirement
• An increase to 20,000 homes per year is required to
meet demand.
• The main reasons for not movingare the lack of suitable
properties (25%)and the high cost of purchase (21%).
Homes

11. We deliver age-friendly
homesthat enable
independent living.
• Only 2%of UK housing is built for retirement; a sharp
contrast to the US(17%)andAu/NZ (13%).
• Just 0.6%of housing in the UK is high quality private
retirement property.
• In 2016, only 5,500 of the 180,000 new homes delivered
were for retirement
• An increase to 20,000 homes per year is required to
meet demand.
• The main reasons for not movingare the lack of suitable
properties (25%)and the high cost of purchase (21%).
Homes
Housingmeets Lifetime Homes
and HAPPI principles.
Cleaning, maintenance
and support/care services.

12. • People livingin a supported community with care services
actually use less care hoursthan if they were livingin
general housing in the community (16%lower).
• It is estimated that a third of residential care placements
could be avoided.
• GP visits, practice and district nurse visits, hospital
appointments and admissions could be reduced by 38%.
• Life expectancy can be increased by up to five yearsby
livingin older people’slifestyle housing.
Health

13. • People livingin a supported community with care services
actually use less care hoursthan if they were livingin
general housing in the community (16%lower).
• It is estimated that a third of residential care placements
could be avoided.
• GP visits, practice and district nurse visits, hospital
appointments and admissions could be reduced by 38%.
• Life expectancy can be increased by up to five yearsby
livingin older people’slifestyle housing.
We deliver personalised
lifestyle, support and care
packagesonaconvenient
and affordable pay-as-used
basis.
Person-centered healthcare plans
Dedicated care services
Extensive wellbeingservices
Health

14. • The asset rich/income poor are increasingly seeking
financial solutions.
• 1in 3 people aged 55 or over are lookingto downsize
• This increases to two thirds of those livingin houses with
more than two bedrooms.
• 1retirement move triggers3 onward moves, freeing family
homes and housing provision.
• £2 billion waswithdrawn through equity release plans in 2016.
Wealth

15. • The asset rich/income poor are increasingly seeking
financial solutions.
• 1in 3 people aged 55 or over are lookingto downsize
• This increases to two thirds of those livingin houses with
more than two bedrooms.
• 1retirement move triggers3 onward moves, freeing family
homes and housing provision.
• £2 billion waswithdrawn through equity release plans in 2016.
We deliver financial solutions
tomake home ownership
and retirement livingtruly
affordable for the under
provided mid-market sector.
Equity isunlocked,
enablingpensionenhancement,
private healthcare provision,
IHT mitigation
Wealth

16. • Nearly 2.5 million people over 75 live alone and are more
likely to feel isolated or trapped in their homes.
• Research suggests loneliness can be asdamagingto health
assmoking.
• Age-friendly communities improve health and have been
found to delay onset of cognitive decline by up to 1.75 years.
• Care in the home allowsspouses with different care needs
to remain livingtogether.
Happiness

17. •We deliver inclusive
communitieswith on-site
bistro, leisure facilities
and enhanced social
activities.
•Lifestyle Manager
Social Events
Beauty Salon
FitnessStudio
Platinum SkiesClub
• Nearly 2.5 million people over 75 live alone and are more
likely to feel isolated or trapped in their homes.
• Research suggests loneliness can be asdamagingto health
assmoking.
• Age-friendly communities improve health and have been
found to delay onset of cognitive decline by up to 1.75 years.
• Care in the home allowsspouses with different care needs
to remain livingtogether.
Happiness

18. A conscious philosophy to connect the hitherto
seperate distinctions of housing, lifestyle
support and financial solutions.

19. WHAT ARE THE OPTIONS?
Estate agency fees
Highstamp duty
Conveyancingfees
Removal costs
Highinterest rates/fees
Lowloanto value ratios
Considerable restrictions
Equity erosion
Typical Downsize
£60K 1
Equity Release
£46K2
Legal costs

20. WHAT ARE THE OPTIONS?
Estate agency fees
Highstamp duty
Conveyancingfees
Removal costs
Highinterest rates/fees
Lowloanto value ratios
Considerable restrictions
Equity erosion
Typical Downsize
£60K 1
Equity Release
£46K2
Platinum Skies
Typical
amount
unlocked:
£200K
Unlock greater equity
Reduce stamp duty costs
Property appreciation
Equity locked
Brand newhomeLegal costs

21. • Older Person’sShared Ownership (OPSO) helpslast time buyers
to afford home ownership during later life by ‘staircasing down’
the portion of property which they own and occupy.
• Purchasers’ can qualify for OPSO by meeting the following criteria:
• 25%–75%of the property must be purchased.
• The purchaser(s) must be aged 55 yearsor above.
• The total annual household income is amaximum of £80,000.
• The property must be the purchaser’ssole residence.
• The eligibility of purchasers’ is validated by Help to Buy.
OLDER PERSON’S SHARED OWNERSHIP

22. 50%
Purchased
by Resident
Grant Funding
Platinum Skies
Capitalisation
of paid rent
OLDER PERSON’S SHARED OWNERSHIP

23. Platinum Skies’part-buy, part-rent concept
hasmeant we’re able to move into a modern,
brand newapartment with more space than
we thought we could afford!
Even our rescue cat, Bernard isquite happy
here. We’re looking forward to sitting on our
patio and enjoying a glassof wine.”
Mr andMrsMarshall, Homeowners,Monterey, Christchurch
HELPING PEOPLE TO UPGRADE, DOWNSIZE OR MOVE SIDEWAYS

24. When you have a brand new home and you
knowthat you have the support of a lifestyle
manager whenever you need them,you
approach life in a different way.You just feel
more confident and independent.
MrsW, Homeowner, Monterey, Christchurch
HELPING PEOPLE TO UPGRADE, DOWNSIZE OR MOVE SIDEWAYS

25. AGE-FRIENDLY HOUSING DELIVERS MANY BENEFITS
The supply of suitable housing and lifestyle services to the elderly is
critical to the health and wellbeing of individuals and the capacity of
public services to support healthy ageingin the longterm.
• Older people can overcome loneliness and isolation
• Relationshipsof spouses with different care needs can be maintained
• Life expectancy can be increased by up to 5 years
• Demand for care and rates of dependency are reduced
• NHS in-patient admissions are lowered and discharges are facilitated
• The need for institutional residential care is prevented.

26. POTENTIAL SAVINGS TO ADULT SOCIAL CARE AND NHS BUDGETS
• The development of a single new specialist retirement housing
unit may result in the followingsavingsper person:
• £9,700 health and care needs
• £18,600 local authority social care entitlements
• If one couple for every 50 older homeownersmoved into a new
unit of specialist retirement housing for at least 10years, this
would yield long-term savingsacrossthe country of £14.5billion

27. Platinum Skies has an
immediate stock of circa
600 units in development
and a further pipeline
of circa 250 units in
acquisition and planning.
IN PLANNING
Monterey, Christchurch
35 apartments located on Christchurch
hospital campus
Quantock House, Taunton
60 apartments in Somerset’s county town
Former Hotel, Sherborne
118retirement houses and apartments at the historic town’s gateway
Lyngford House, Taunton
47retirement apartments on a former NHS site.
Chapters, Salisbury
196 apartments and houses in the heart of the cathedral city
DELIVERING 150 NEW HOMES EVERY YEAR
UNDER CONSTRUCTIONNOW SELLING
Vista, Poole
50 apartments with views over Poole Harbour
Esprit, Poole
55 apartments located in the town centre of Poole, Dorset
UNDER CONSTRUCTION

28. ✓Good for the individual
✓Good for the community
✓Good for Government
✓Good for everyone
OLDER PERSON’S SHARED OWNERSHIP

29. Greater rollout of Older Person’sShared Ownership
Development partnershipson underutilised state-owned land
Tax concessions to encourage the elderly to move
Planningpolicy changes to enhance land supply
THOUGHTS FOR THE FUTURE

30. T H A N K Y O U
dh@plat inumskies.co.uk