This week, our exclusive property interview looks at the retirement sector, a growing part of our new homes industry, and speaks to a senior executive of specialist Platinum Skies, its chief executive David Hines.
Hi David, please tell us a bit about yourself and Platinum Skies?
Platinum Skies is a southern-based retirement housing provider, committed to making luxury retirement living affordable and transparent for everyone. With 1,000 homes currently in the pipeline, we strive to create the homes, services and financial solutions which together make retirement living more comfortable, more enjoyable and more affordable. As chief executive, my vision for Platinum Skies is to become the leading retirement community provider of choice.
What is Platinum Skies bringing to the retirement property market that its competitors aren’t?
We believe we have the ethical and innovative antidote to the retirement housing crisis. We’re seeing an asset-rich and income-poor generation, stuck facing expensive downsizing options and a lack of affordable homes. The average downsize in the UK only releases £60,000 and the widely used, equity release schemes, only unlock on average £46,000 but favour the lender and are inflexible and expensive, ultimately draining the value in your home.
As a private retirement provider with Registered Social Landlord status, ours is a unique proposition, we can offer retirees a solution to access more capital in their retirement, through part-buying and part-renting a Platinum Skies property. Purchasers can have a whole property for half the price plus a modest top up rental fee, releasing ample funds to support future care needs or to fund the lifestyle they have always yearned for, now.
What are the main terms and conditions of the Shared Ownership scheme and who can qualify to use it?
You buy a percentage of the property and you pay us rent on the remainder. When the part owners leave their property, they or their estate receive their original percentage share of the sale, including any increase in value accrued, minus a modest event fee which, depending on length of tenure, ranges from 1% to 5% of the value of the property at point of sale.
All prospective purchasers must meet eligibility criteria in order to purchase a property with us using this scheme: they must meet the minimum age requirement; their annual income must be less than £80,000 per household and they can only own one property. The reason for this criteria is to make sure we are targeting the right audience and genuinely helping retirees find suitable, affordable, lifetime homes where they can enjoy their later years.
What will your customers find in a typical Platinum Skies home?
Our high-quality, architect-designed apartments, houses and cottages are located in pleasant residential areas across the south, sought by this deservedly demanding market sector. Our designers have considered every detail, from the spacious rooms, to the generous windows that flood them with light, to the ample storage space. Everything is set up to be comfortable to use, whether you’re 55 or 95.
All of our properties are close to high street amenities, and several come with stunning coastal views. Each development has been appointed its own resident lifestyle manager, on call to help with residents’ needs, generate a social ambience, and oversee the communal areas such as sitting and IT rooms, bistros and cafes. Services such as cleaning, shopping and nursing can all be contracted as and when needed through our authorised care provider, so residents pay for what they want when they need it.
Our retirement homes market is some way behind those of the USA, New Zealand and Australia – have you been inspired by developers in those countries?
The USA, New Zealand and Australia definitely have the right attitude to retirement housing, there is a lot that can be learnt. A ‘one-size-fits-all’ mentality was adopted for many years by the main providers here in the UK and largely put people off wanting to downsize. I think with a wider variety of properties being built, with more innovative ways to purchase a property, we will start to see a shift in people’s perception towards retirement living and the benefit it can provide.
Do you have a typical customer? What sort of people are approaching you about the homes you’re offering?
We want to empower a ‘stuck’ generation, creating luxury retirement homes at an affordable price for those who have been priced out of the retirement housing sector.
We have appealed so far to quite a wide audience, from people interested in the social aspect of living in a retirement property, those concerned with failing health and needing something more manageable, to those who thought they would never be able to afford a property like ours but with the part-buy/part-rent scheme this is now possible.
Is healthcare a big consideration for many or is lifestyle the main concern? What kind of care can your residents get?
Unfortunately, most of us don’t consider our health until it begins to deteriorate. We want people to move pro-actively rather than re-actively or when a health crisis forces them to consider downsizing – propelling them into a no-choice situation rife with disadvantages.
We provide domiciliary care in all our properties. We have partnered with Agincare who have been providing community health services and support for over twenty years. Our customers can move into their new property knowing that however much, or however little support they need, it’s there for them as and when they need it, only paid for when they use it.
You’ve just launched Monterey in Dorset – can you tell us a bit about that and how that location reflects on your company’s choice of places to build?
Location is key to us. We want to provide fantastic facilities close to local amenities so that our residents have everything they need on their doorstep. This includes being as close as possible, if not on the same site – like at Monterey – to a GP surgery and pharmacy and easy access to local transport.
Monterey is set within private gardens in the leafy grounds of Christchurch hospital, itself a conservation area – a great location. However, a short stroll or bus ride takes you into the heart of the busy town centre with its quirky shops and beautiful quay.
How do you see the retirement property market changing over the next few years – and how older buyers might start to look at schemes like those you’re building?
I think a lot of people see innovation in the sector as purely technology-based ideas. This is, of course, needed to continue progressing but as we move into an age where many people are working long into their ‘retirement’ years or haven’t built up the equity in a property to live mortgage free innovative financial mechanisms, like ours, become crucial. I also expect to see full rental options become more widely available over the coming years and further financial benefits for retirees who chose to live in a retirement living property.