Why Invest in Ethical Property?
In the world of investment, property is the safest route to net returns. After all, as long as people need accommodation, property will always be in demand be it commercial, student or residential. We’ve entered a new era of property investment, where financial return is not the only concern but also how the property can service a community.
An ageing population
As scientific discoveries have revolutionised medicine, the 2019 life expectancy in the UK is 80.99 years while in 1969 the life expectancy was 71.72 years. The UK celebrates over 10 million aged 65 and older, outnumbering those aged 16 and under with the baby boomer generation (1946-1964) reaching retirement age, the demand for residential and nursing homes is at high demand. Currently, 400,000 people are living in care homes, and over 800,000 people living with Dementia. By 2021, this will rise to 1 million, and be more than double by 2050.
They’re currently 400,000 people living in care homes, and due to the over 85-year-old demographic being the fastest growing age group, predicted to grow by 106% to over 2.6 million by 2030.
With the mortality rate in the UK, dramatically rising, there is a dramatic increase in demand for specialist dementia and nursing care. The care home market will play a significant role in our future society, with increasing demand for quality accommodation, care and funding.
The combined market value for older people in the UK is currently estimated to be worth £22.2 billion, of which £13.4 billion is attributable to residential care. As the number of elderly people with high care needs in the UK is expected to increase over the next 20 years, the need for modern, fit for purpose care homes is increasing rapidly.
The Millennial Effect
Over 62% of millennials have considered starting their own business, with 72% feeling that start-ups and entrepreneurs are a necessary economic force for creating jobs and driving innovation. According to the 2016 BNP Paribas Global Entrepreneur Report, millennials are starting businesses at younger ages than their counterparts in previous generations. Baby boomers, for example, tended to launch their first business at an average of 35 years of age. Millennials, on the other hand, start their first business around age 27, implying they’re more eager to start businesses and possibly, are more willing to take risks in doing so. The report also shows that millennials have launched about twice as many businesses as their baby boomer counterparts have
The millennial leaders demand action on major issues including climate change, mental illness and work life balance. Commercial property is seeing their influence and meeting their perquisites outdoor spaces, remote working capabilities and multipurpose spaces.
Autism and the UK
In 2019, there are approximately 700,000 autistic people in UK, more than 1 in 100. Including their families, autism is a part of daily life for 2.8 million people. Many autistic children in state schools find difficulty in their needs being catered to, to the extent that 63% of children on the autism spectrum are not in the kind of school their parents believe would best support them. Additionally, 17% of autistic children have been suspended from school; 48% of these had been suspended three or more times; 4% had been expelled from one or more schools.
As autism is a lifelong disability that cannot be seen, the need for support to cope with finding employment and surviving daily life is vital. Only 16% of autistic adults in the UK are in full-time paid employment and only 32% are in some kind of paid work.
To adhere to this, John Lewis has launched autism-friendly shoe services and The Education Authority now spends £270m a year on supporting children with special educational needs – including autism.
With the rise of ethical factors being pushed for the forefront, the property market must represent the world we live in, both financially and medically.