Retirement Villages Group (RVG), owned by AXA IM Alts, has launched a new way to buy and sell its retirement homes, as part of its mission to make retirement living more affordable and accessible.
The introduction of this new and unique way to own a property will enable residents at the developer’s new Thrive Living collection to benefit from lower weekly management fees, offset against a deferred fee on sale. Weekly fees will also cease two months after the resident has left the property, removing liability on the homeowner, their family, or their estate to continue paying management fees.
Under the new customer contract, RVG will also take on the responsibility to refurbish and re-sell the homes, guaranteeing residents the price they initially paid for their home, less the deferred management fee, ensuring residents complete confidence in the legacy they leave to their families when they leave the community.
This first-of-a-kind financial model for the private retirement living sector has been launched in response to a growing demand for more affordable, transparent, and simple retirement living solutions.
As an Associated Retirement Community Operators (ARCO) member, RVG abides by the ARCO Consumer Code which requires full transparency regarding fees and charges. According to research published by ARCO, when asked to consider moving into retirement housing, 90% of older people say they would be concerned about possible hidden fees and charges.
Will Bax, chief executive of Retirement Villages Group, commented: “With a rapidly ageing population and housing market at crisis point, we need to act now to transform the options available to older people. This means building more age-appropriate homes that are affordable, with simple and transparent contracts that respond to the concerns of people looking to move in later life. The UK lags behind other markets which offer regulated products that are easier to access with financial arrangements that enable affordability and access for more people.
“Integrated retirement communities are a solution to so many of the social issues facing our ageing society, enabling people to keep living active, independent lives in a setting that supports health and wellbeing. However, financial security is key and there are too many poor examples of mass-market retirement housing proving to be a bad investment for elders and creating a long-term problem for their families. It’s time to fix that, so our new Thrive Living collection aims to make the process of buying and selling a retirement home as simple and certain as possible. So, our residents can focus on the important things in life, feeling safe in the knowledge that they can afford the bills and that their financial legacy is secure.”
The first of RVG’s Thrive Living collection communities are set to open their doors to new residents in Chester in November 2024 and in West Byfleet in early 2025. This will be followed by Tunbridge Wells in 2026. The urban and peri-urban developments will offer communal green spaces and a range of services, facilities, and social groups to support residents to continue living well in a safe and secure environment.
Michael Voges, chief executive of ARCO, commented: “Innovation in older people’s housing is incredibly important. The future of retirement housing in the UK will look very different from the past. That’s why we’re really excited to see ARCO members developing new tenure models and contracts for their customers. The older population is hugely diverse and as the Integrated Retirement Community sector continues to grow, we expect to see more new and varied models coming forward.”
