The UK housing market is not keeping pace with the country’s ageing population. While the number of people aged 65 and over continues to rise, most new homes are still designed for younger buyers. Much of today’s housing delivery in the UK continues to focus on one dominant product: two-storey starter homes.
While this type of housing remains important, it masks a growing, increasingly urgent imbalance in the market: a severe undersupply of suitable homes for an ageing population.
At Landhaven, our current Alveston eco bungalows offer a live example of how addressing this overlooked need can deliver both positive social outcomes and a robust investment strategy.
The UK’s Ageing Population Is Reshaping Housing Demand
The UK’s population is ageing rapidly. Nearly 30% of households in England are now headed by someone aged 65 or over, and forecasts suggest that around one in four people will be aged 65+ within the next two decades.
Yet housing supply has failed to keep pace with this shift.
Despite the growing number of older homeowners, the majority of new housing continues to prioritise younger demographics, often overlooking how people want (or need) to live later in life.
This imbalance has been highlighted in wider public debate, including recent commentary by Kirstie Allsopp on a BBC Radio 4 interview, who has pointed out that the housing ladder only functions properly when there are appropriate homes available at every life stage.
Why Most Older People Live in Homes That Don’t Suit Them
Around 91% of people aged over 65 live in mainstream housing, rather than homes designed with accessibility in mind.
Many of these properties include:
- Stairs as the primary access to upper floors
- Bathrooms located on upper floors
- Layouts that become restrictive over time
In fact, only a small proportion of homes occupied by older people have level access at the entrance, or essential living facilities on a single level features that become increasingly important with age.
The issue is not a lack of willingness to move. Research consistently shows that over a third of homeowners aged 55+ would prefer a bungalow or single-storey home for their next move. The challenge is availability.
Why Single-Storey Bungalows Are Rare in Modern UK Development
Despite clear demand, bungalows now account for around 1% of new homes built each year, down from more than 10% in the 1990s. They are often dismissed as:
- Inefficient on land
- Less commercially attractive
- Too niche in appeal
But this perception ignores how bungalows actually perform when designed and located correctly.
Single-storey homes tend to attract:
- Owner-occupiers rather than short-term investors
- Buyers with significant equity and low reliance on mortgage finance
- Longer-term residents, reducing churn and volatility
For developers and investors, this often means stronger price resilience and more predictable exits.
Landhaven’s Alveston Eco Bungalows Were Designed Specifically to Address this Market Failure.
In fact, the scheme was originally designed to include dormer rooms at first floor level. However, we took a deliberate decision to keep the homes entirely single-storey.
That decision was strategic.
By retaining a true bungalow layout, the homes would:
- Appeal strongly to older buyers and downsizers
- Remain practical and accessible long term
- Still work beautifully for smaller families
Rather than defaulting to standard two-storey units, the final scheme focuses on:
- Single-storey, accessible living
- High-quality, contemporary design (not “retirement housing” in appearance)
- Strong environmental performance and energy efficiency
- Homes built for long-term occupation, not speculative turnover
We then chose to use the roof space differently, by raising the ceilings as high as possible to create a striking sense of volume and light throughout the homes. The result is a vaulted interior that delivers genuine architectural presence, a “wow effect” that makes these homes somewhere to fall in love with, not simply somewhere practical to live.
This approach aligns the needs of buyers with the realities of demographic change – creating homes that are desirable, practical, and future-proof. Find out more about our eco-bungalows project.
Why a Lack of Downsizing Options Affects Younger Buyers Too
Developing homes suitable for older generations is not simply a planning or social responsibility, it is a commercially sound strategy.
Well-designed single-storey homes:
- Enable downsizing, freeing up larger family homes elsewhere
- Support independent living for longer
- Reduce pressure on health and social care services
- Sell based on genuine need, not short-term trends
At Landhaven, we believe the most resilient developments sit at the intersection of market insight, thoughtful design, and financial discipline.
What This Means for Investors and Landowners
For investors, this highlights how underserved demographic demand can offer a more stable alternative to trend-driven housing models.
For landowners, particularly those with sites in established or semi-rural locations, single-storey schemes can often be:
- More appropriate in scale
- Better received by local communities
- Stronger in long-term value
The future of housing delivery isn’t just about building more homes, it’s about building the right homes for the population we actually have.
The numbers behind the need
According to the UK Government’s Older People’s Housing Taskforce report, over 90% of people aged 65+ currently live in mainstream housing, while only 12% have level access at the entrance, limiting long-term mobility and independence.
Source:
https://www.gov.uk/government/publications/the-older-peoples-housing-taskforce-report/our-future-homes-housing-that-promotes-wellbeing-and-community-for-an-ageing-population
Despite clear downsizer demand, industry data shows that bungalows accounted for just 1% of new homes built in 2024, compared to around 11% in 1990 – a sharp decline in one of the most age-appropriate housing types.
Source:
https://hoa.org.uk/news/bring-back-bungalow/
Research into homeowner preferences shows that 38% of homeowners aged 55+ would prefer a bungalow for their next move, highlighting significant unmet demand in the mainstream housing market.
Source:
https://uk.finance.yahoo.com/news/calls-bring-back-bungalows-over-230100567.html
There is a shortage of bungalows in the UK because most new housing developments prioritise two-storey homes to maximise land value and density. Single-storey homes require more land per unit, making them less attractive to volume housebuilders.
As a result, bungalows now represent only a small fraction of new homes built each year, despite strong demand from older homeowners seeking accessible, step-free living.
Downsizing frees up housing supply by releasing larger family homes back onto the market.
When older homeowners move into appropriately sized, accessible properties, their previous 3- or 4-bedroom homes become available for growing families. Without suitable downsizing options, these larger homes remain under-occupied, restricting movement across the UK housing chain.
Providing attractive homes for older buyers improves transaction flow and increases effective supply without needing additional land.
Homes that suit the UK's ageing population typically offer step-free access, single-storey living or adaptable layouts, strong energy efficiency and low maintenance design.
Key features include:
Level entrances and wide doorways
Good natural light and circulation space
Energy-efficient construction to reduce bills
Manageable gardens
Importantly, these homes should be well-designed and aspirational, not institutional, reflecting the wants and expectations of active and independent older buyers.
Housing for older people is important because it improves overall market efficiency.
When suitable homes are available, older homeowners are more likely to move. This releases larger properties back into circulation, supports housing chains and increases supply for younger buyers.
In the UK, addressing the shortage of age-appropriate housing is therefore both a social need and a structural market opportunity.
