Transcript Why invest in Oak Retirement Ltd?

Why work with
Oak Retirement Ltd?
Why do people choose
Extra Care?
• An alternative to a Care Home
• In the case of private accommodation preserving their capital to leave to
relatives
• To retain their independence despite
approaching or increasing care needs
• Because they want to ensure their
‘partner’ is cared for when they’re gone
• Because they can’t, or don’t want to,
rely on family to help them in the future
Why should people choose
Extra Care?
• Compared to those living in the community in receipt of
domiciliary care, people in extra care housing are
about half as likely to enter institutional
accommodation
• About 25% of residents entering extra care with
additional social care needs go on to experience an
improvement in their health
• Extra care housing is associated with a lower likelihood
of admittance to hospital compared to a matched
sample living in the community.
• A lower than expected number of falls occur in a
matched comparison group when compared to those
living in the community.
• International Longevity Centre-UK research using longitudinal data
from Audley Retirement, Extra Care Charitable Trust, and
Retirement Security. Published 13.9.11
Why should people choose
Extra Care?
• Older people in Extra Care accommodation live
longer and spend less time in hospital
• Investment in specialist housing for older
people gives an average net benefit to care and
health budgets of around £444 per person per
year, which equates, in England, to a total
benefit for the state of around £219m per year.
• The maximum potential benefit, in England, is
£1.7bn per year.
• Frontier Economics (December 2010), “Financial benefits of
investment in specialist housing for vulnerable and older
people”. HCA
Why do we need more
Extra Care?
• The level of all UK households underoccupying their homes is thought to be
37%,
– Half are aged 50 – 69 and they occupy 3.3
million homes.
• LGA “Good homes in which to grow old” 2010
Why do we need more
leasehold Extra Care?
• By 2026 the number of 85 year olds is projected
to double
• In the next 20 years the Department of Health
estimates 1.7 million more people will have a
potential care need than today.
• About 85% of us, and more than 70% of people
over 65, own the home we live in.
People who have worked hard all their life to
buy their own home do not want to become
tenants when they retire!
Why do we need more
leasehold Extra Care?
• Extra care is better for
– The individual
• They’ll live longer
• Have better quality lives
• Save money
– The State
• Reduced health care costs
• Reduced social care costs
• More efficient use of land and buildings
Why is ‘now’ the time
to invest?
Because residential land, in England, is
available at reasonable prices ….
Diagram 2: Residential land values in England
£4,500,000
£4,000,000
£3,500,000
£3,000,000
£2,500,000
Price per hectare
£2,000,000
£1,500,000
£1,000,000
£500,000
£0
1/1/2004
1/1/2005
1/1/2006
1/1/2007
Year
Data from VAO Property Market Report 2011 - Table 563.
1/1/2008
1/1/2009
1/1/2010
Why is ‘now’ the time
to invest?
… and construction costs are also competitive:
‘Tender returns across most sectors continue to
reflect highly competitive pricing, with contractors
prepared to undertake a high degree of risk or look
for innovation in delivery to seek commercial
advantage. Market conditions remain skewed firmly
towards the buyer due to lack of demand.’
– Gardiner and Theobold Tender Price Indicator. 3rd
Quarter 2011.
Which means …
Developing Leasehold
Extra Care properties has
huge potential for
investors and
developers.