As the population ages and available land becomes scarcer, we spoke to one of our partners in our Birmingham office, Arthur Morgan, who works in our development team to learn why developing care homes on smaller brownfield sites is becoming increasingly viable.
Many landowners with unused urban sites are hesitant to develop, fearing high costs and low returns. However, these sites could be ideal for care homes or retirement homes, unlocking their value and providing essential community facilities.
Urban development typically requires sites that can deliver 40 homes or more to be financially viable. Smaller sites often see costs outweighing returns, but this doesn’t mean smaller brownfield sites can’t be developed. The demand for care and retirement homes is rising with our ageing population, and accessible urban sites are perfect for these developments.
Care and retirement homes are higher-density and less affected by market fluctuations than private residential homes. Sites around an acre in size can be particularly suitable.
As part of the strategic asset reviews, we perform for clients in a wide variety of sectors and markets, we audit any land which fits these criteria and see if it is worthwhile to investigate developing care homes or retirement homes on the land. If local authority requirements are met, it can be a win-win for both landowners and developers.
“We are in the early stages of several new projects and expect more to follow as the need for care homes grows. We encourage landowners with under-utilised urban land to contact our team so that we can guide them through the process of potentially building a care home and maximising the value of those assets.
