How much does sheltered housing cost?

Finding the right place to live as you or a loved one grows older is a big decision. You might want more independence but also a bit of extra ad hoc help. For those in that situation, sheltered housing could be just what you’re looking for—an option that allows you to retain your independence while offering support when needed. But how much does sheltered housing cost?

This guide breaks down everything you need to know about the costs of sheltered housing, particularly in central London, its suburbs, and the home counties.

What is sheltered housing?

Sheltered housing, sometimes called retirement housing, is housing designed for older people who want to maintain independent living with a bit of support on hand. These homes are typically smaller, more manageable properties that often come with safety features like 24-hour community alarm systems. Think of it as a compromise between staying in your own home and moving to a care home.

In sheltered housing, you’ll usually find:

• A scheme manager or warden (on-site or visiting).
• Private living spaces, often in the form of flats or bungalows.
• Communal areas for socialising, such as lounges, gardens, and laundry facilities.
• Organised social events, like coffee mornings and exercise classes.

This type of housing offers peace of mind without taking away your independence. You’re still in charge of your cooking, bills, and personal routines—it's just that help is closer if you need it. Unlike nursing homes, sheltered housing accommodation doesn’t offer constant care but it can be paired with additional personal care services through external providers like Tiggo Care if you want.

Who is sheltered housing for?

Sheltered housing is for older people, often aged 55 or over, who might appreciate some extra support but don’t need the intensive care provided in a care home. It’s particularly appealing if you’re living alone, dealing with minor health issues, or simply seeking a sense of community.

For example, if you’ve been finding it harder to manage a large home, or if concerns about safety (like trips or falls) are on your mind, sheltered housing could be ideal for you.

Breakdown of sheltered housing costs

The cost of sheltered housing depends on several factors. Here’s a detailed look at what you can expect to pay:

1. Rent or mortgage payments

Sheltered housing can be rented or purchased, and costs differ based on this choice:

• Renting through councils or housing associations: If you rent through a local council or housing association, the rent is usually lower than in the private sector. These rents are designed to be affordable, particularly for people on low incomes. Monthly rents can range from £300 to £700, depending on the location and size of the property.

• Private renting: Private sheltered housing typically has higher rents, starting from around £600 per month and potentially exceeding £1,500 in central London. While private rentals may have fewer eligibility criteria, you’ll likely face higher rents and less security of tenure compared to council or housing association tenancies.

• Buying sheltered housing: Buying is also an option, with properties purchased like any other on the market. However, you’ll need to account for ongoing service charges.

2. Service charges

Service charges cover the maintenance and management of the building, communal areas, and services such as the warden service. The charges typically include:

• Maintenance of communal areas like lounges and gardens.
• Cleaning of corridors and lifts.
• Repairs to shared facilities.
• Salaries of the scheme manager and emergency alarm services.
• Building insurance.

These charges vary by scheme and can range from £150 to £300 or more per month. In central London, where costs are higher, service charges can exceed £400 per month. It’s crucial to clarify what's included in the service charge when considering sheltered housing, as some services, like the community alarm system, may incur additional fees.

3. Council tax

Like any other housing arrangement, residents in sheltered housing are responsible for paying council tax. Rates vary depending on the local authority and the council tax band of the property. If you’re on a low income, you may qualify for council tax support, which can reduce the amount you need to pay.

4. Utility bills

You’ll be responsible for paying your own utility bills, such as gas, electricity, and water. These costs depend on usage and the type of heating system in the building. Some schemes have energy-efficient systems that help reduce bills, but it’s always wise to budget for these expenses.

5. Personal care services

If you need extra help, such as assistance with personal care or meal preparation, you’ll need to arrange this separately. Costs for personal care services vary widely and can be provided by private agencies or through the local council. While this isn’t included in the standard cost of sheltered housing, it’s worth factoring into your budget if needed.

6. Additional costs

You may encounter other costs, such as:

• Social Activities: Some activities may have a small fee, such as group outings or special events.
• Extra Services: Services like laundry, cleaning, or meal delivery might come with additional charges.
• Transfer Fees: If you decide to sell a sheltered housing property, there may be transfer fees—these can range from 1% to 30% of the sale price, depending on the scheme.

Factors influencing sheltered housing costs

The price of sheltered housing isn’t uniform. Various factors can influence the overall cost:

1. Location

The cost of sheltered housing is higher in urban areas, particularly in central London. You’ll find that housing support services cost more in central London compared to London suburbs or the home counties. The closer you are to public transport, amenities, and healthcare facilities, the higher the potential cost.

2. Level of care and support

Some sheltered housing schemes offer more comprehensive housing support, such as extra care housing, which provides additional services like person-centred care or on-site nursing care. These schemes generally have higher service charges.

3. Type of accommodation

The size and type of the property can affect the cost. One-bedroom flats tend to be cheaper than larger two-bedroom properties. Additionally, properties in schemes with more luxurious communal facilities—like gyms, libraries, or landscaped gardens—often have higher charges.

4. Ownership type

Check the leasehold or freehold status before buying. Freehold homes may not have service costs, but leasehold homes do. Be aware of any reserve fund contributions, which cover future maintenance work, like roof repairs or lift replacements.

How to choose the right sheltered housing?

When considering sheltered housing, focus on more than just the cost. Here are some steps to help you make the right choice:

1. Identify your needs

Start by understanding your needs or those of your loved one. Are you looking for a community with social activities, or do you require a higher level of support? Knowing what you need will help you identify the type of sheltered housing that best fits.

2. Location

Proximity to family, friends, healthcare facilities, and public transport can significantly affect your quality of life. If being close to your GP for advice is important, ensure the scheme is located nearby. Schemes in central London are more expensive but offer more amenities, while those in suburban areas or the home counties may be quieter and more affordable.

3. Explore the facilities

Check whether the accommodation has the facilities that matter to you. Does it have a communal lounge where you can socialise? Is there a door entry system for added security? Is the community alarm system reliable and easy to use? If social interaction is important to you, look for schemes that offer regular social activities.

4. Understand all costs

When comparing schemes, be sure to understand the full breakdown of costs, including service charges, extra support, and potential transfer fees. Ask questions like:

• What does the regular service charge cover?
• Are there any additional fees for social activities or the use of communal facilities?
• Is any of the cost covered by Housing Benefit or Pension Credit?

5. Talk to a sheltered housing officer

A sheltered housing officer can offer detailed insights into the schemes available in your preferred area. Sheltered housing officers can discuss eligibility, cost, and the types of support available.

Conclusion

Older adults looking for a new home where they can maintain their independence but still have some extra support on hand should consider sheltered housing. Whether you are seeking sheltered accommodation for yourself or someone else, you must understand all the costs associated with this type of accommodation before making the move.

If you are looking for housing or don’t know about all the schemes, ask your local council or housing association. Price isn’t everything when it comes to sheltered housing, you want a home where you feel safe, loved, and accepted.