Integrated Retirement Communities and Planning: Navigating Key Issues and Opportunities
Context
There has been an increasing number of IRCs, but their integration into existing planning frameworks raises several challenges. Unlike traditional housing developments, IRCs often blur the lines between residential and care facilities, straddling Use Classes C2 and C3 (Town and Country Planning (Use Classes) Order 1987), creating a need for a more nuanced approach in planning decisions.
Challenges
One of the main challenges faced by IRCs is a lack of site allocation in local plans, or policies addressing the need for older peoples housing.
IRCs are multifaceted in nature which can result in complex planning applications which in turn leads to longer approval times, increased cost and potential refusals. IRCs are not dealt with uniformly across local planning authorities. Developers may find it challenging to navigate this, particularly if planning authorities are not experienced in dealing with IRCs. ARCO (the trade association for IRCs in the UK) and its members have developed a model section 106 agreement which deals with the key operational terms and definitions relating to IRCs to help remedy this.
Affordable housing requirements and other contributions can mean that IRC developments are often unviable, particularly due to competition from other uses such as general housing.
Rectory Homes
Rectory Homes Ltd v (1) Secretary of State for Housing Communities and Local Government (2) South Oxfordshire DC [2020] EWHC 2098 (Admin).
Rectory Homes, as developer, challenged the Secretary of State's dismissal of their appeal against the council's decision to refuse planning permission for a 'housing with care' development (Class C2) in Oxfordshire. The case considered whether a proposal for extra care housing within Class C2 fell within the scope of the local plan policy requiring schemes for 3 plus dwellings to provide affordable housing. The judgment clarified that extra care developments falling within Class C2 will not necessarily be exempt from affordable housing policy requirements, highlighting that this will be dependent on the relevant development plan policies. The case demonstrates the lack of consistency IRCs face in the planning system and the 'grey areas' that exist for this type of development.
Opportunities
The government is beginning to appreciate importance of addressing the needs of an aging population, and policy changes could assist the development of IRCs. For example, the NPPF encourages local authorities to plan for housing that meets the needs of older populations, which may well pave the way for more local policies specifically tailored to IRCs.
The report of the Older People's Housing Taskforce was published on 26 November 2024, including key recommendations to incentivise a wide range of later living housing options such as:
- Setting a target of 10% of delivery through the Affordable Homes Programme for later living housing (with grant funding to support the capital costs of development)
- The Department of Health and Social Care setting aside capital and revenue funding for service-led housing providers to bring forward proposals to meet the needs of the aging population
- Introducing a planning policy presumption in favour of later living housing to scale up appropriate housing for an aging population
- Revising the use class definitions guidance to clarify which class(es) apply to various forms of later living housing – Matthew Pennycook MP in his Written Ministerial Statement has said the government is working with the Planning Advisory Service to meet this recommendation
- Revising policy to include specific requirements for local planning authorities to provide and allocate sufficient land in varied locations and recognise the nuances of the various forms of later living housing
A recent appeal decision for an IRC development in Spelthorne granted planning permission on a green belt site, where the inspector gave “very substantial weight” to addressing the “clear and pressing need for this type of development”.
Therefore, at governmental level, as well as the plan-making and decision-taking ends of the planning system, there is growing recognition of the need to address the issues with housing for the ageing population, with IRCs well placed to meet the need.
Conclusion
IRCs offer a promising solution to the UK's aging population. While there are challenges, there are also opportunities for policy support which can pave the way for a more inclusive planning environment for IRCs.
