Churchill Living announces 300-home development deal with Housing 21 as it eyes affordable housing growth

Churchill Living has announced a new development deal with not-for-profit retirement living provider Housing 21 to deliver more than 300 affordable rented homes for older people across five different sites. 

Construction has already started on developments in Banbury and Shaftesbury, with further developments planned in Andover, Felixstowe, and Gravesend later in the year.

Under the deal Churchill initially owns the sites and delivers the homes under development agreements for Housing 21, with ownership passing to the housing assocation once under construction at the ‘golden brick’ stage. Housing 21, a 24,000-home housing association, will then manage the homes which all be for age restricted 55+ affordable rent. The schemes will be delivered with Homes England support grant funding.  

Historically, developer Churchill Living has concentrated on private for-sale retirement properties, but Spencer J McCarthy, the firm’s chief executive, said the affordable retirement space was “an area of growth” for the business given the government’s drive to build more affordable homes and growing demand.

“There is a drive from the government and local authorities for more affordable retirement housing…So this (partnership) meets that need, and we see it as an opportunity to grow that arm of the business,” he said.

The firm established a new partnerships arm last year. Martin Young, partnerships managing director at Churchill, said the agreement with Housing 21 was the “first major milestone” for the new arm. 

Young said the partnership would help meet the changing needs of an ageing population across the country. 

A report published by the Ministry of Housing, Communities and Local Government and the Department of Health and Social Care in November 2024 suggested that the UK needs an extra 30-50,000 new later living homes per annum to meet the demands of an ageing population. 

Their research suggested that private leasehold Older People’s Housing options were unaffordable for the majority of households aged 75 years and over. 

“Demand for affordable retirement housing is growing rapidly, and partnerships like this are essential if we are to meet it at scale,” McCarthy said. 

McCarthy expected that Churchill Living would sign further partnerships in this space in the coming year, suggesting that around 10-15 per cent of Churchill Living’s business would come from affordable retirement rental housing. 

The company did not disclose the value of the contract with Housing 21.