People are working longer than ever in the UK. The state pension age started rising from 66 in May 2026 and will reach 67 by March 2028, with a further increase to 68 between 2044 and 2046 already written into law. According to the Centre for Ageing Better, there are now almost one million more workers aged 65 and over in the UK labour market than there were at the turn of the century, bringing the total to around 1.43 million.
That’s a huge number of people who are still economically active but whose housing needs look very different from a 30-year-old climbing the career ladder. And those changing needs are starting to reshape what the property market actually builds, sells and promotes. Stay with us as we look at the data behind the trend, what older workers actually want from a home, and why park bungalow communities are picking up so much of the demand.
More People Working Past 65, Fewer Wanting a Four-Bed Semi
ONS employment data shows that the employment rate for over-65s reached 13% in Q4 2025, up from just 10.4% a decade earlier. A growing share of these workers are self-employed or working part-time, often from home. For many, the large family house they raised children in has become more burden than benefit. There are spare bedrooms sitting empty, gardens that take a full weekend to maintain and utility bills that don’t make sense for one or two people.
The government’s Older People’s Housing Taskforce found that roughly 3.9 million older households in England are under-occupying their homes. Around 35% of those looking to move in the next six months cited downsizing as the main reason. But there’s a catch. Many aren’t finding the right type of property to move into, and that gap between demand and supply is where the market is changing.
What Older Workers Actually Want From a Home
The conversation around housing for older adults has typically centred on retirement. But when someone is still working at 67 or 70, their priorities don’t neatly fit the traditional retirement home model. They’ll want a dedicated space for a home office. They’ll want single-storey living so they’re not dealing with stairs every day. And they’ll want a location that keeps them connected to shops, healthcare and social life, not tucked away in the middle of nowhere.
The Older People’s Housing Taskforce found that only 19% of existing homes in England have step-free access. That’s a real problem when more people are working into their late 60s and want a home that suits them now, not one they’ll need to retrofit in five years’ time. Accessible design, low-maintenance layouts and energy-efficient builds aren’t niche requests anymore. They’re becoming standard expectations for a growing slice of the market.
Park Bungalow Communities and the Demand for Single-Storey Living
This is where park bungalow communities have carved out a strong position. They offer purpose-built, single-storey homes in managed settings, typically with communal grounds, low maintenance responsibilities and a built-in sense of community. For someone who’s still working but wants to simplify their living situation, it’s an appealing setup.
Regency Living, for example, operates park bungalow communities across locations in Cornwall, Hampshire, Norfolk and Kent. Their homes are designed around the kind of low-maintenance, well-connected living that suits people who are active and working but don’t want the hassle of a large traditional property.
The demand for this type of housing has grown alongside the broader trend of older workers choosing to downsize on their own terms rather than waiting until retirement forces the issue.
What This Means for the Wider Property Market
The ripple effects go beyond specialist housing. When older homeowners sell family-sized properties to move into something more manageable, they free up stock for younger buyers and growing families. Encouraging the right kind of downsizing could help ease pressure at every level of the housing chain.
For developers and investors, the message is fairly clear. The UK’s workforce is getting older, people are working longer, and the homes being built need to reflect that. Accessible, single-storey, low-maintenance properties in well-connected locations are a response to a demographic trend that’s only going to accelerate.
A Market That Will Keep Moving in One Direction
The OECD’s 2025 Employment Outlook made a striking point: raising older workers’ employment rates could add 0.26 percentage points to UK GDP per capita growth annually between now and 2060. That’s a big number in economic terms, and it tells you this isn’t a short-term blip.
More people will work longer, and more of them will want homes that fit the way they live at 65, 70 and beyond. The property market that meets them where they are, with the right homes in the right places, will be the one that benefits most.
Frequently Asked Questions
How is the ageing workforce changing the UK property market?
The UK’s ageing workforce is increasing demand for homes that suit people working later in life. Accessible, single-storey, low-maintenance and well-connected properties are becoming more relevant as more people continue working beyond 65.
Are more people over 65 working in the UK?
Yes. The article cites ONS data showing that the employment rate for people over 65 reached 13% in the fourth quarter of 2025, compared with 10.4% a decade earlier.
How many people aged 65 and over are working in the UK?
According to figures cited from the Centre for Ageing Better, there are around 1.43 million workers aged 65 and over in the UK, almost one million more than at the turn of the century.
Why are older homeowners considering downsizing?
Many older households are living in larger family homes with unused bedrooms, gardens and higher maintenance requirements. Downsizing can provide a more manageable property while allowing homeowners to choose housing that better suits their current lifestyle.
What type of homes do older workers want?
Older workers may increasingly want homes with single-storey layouts, dedicated workspace, low maintenance requirements, energy efficiency and easy access to shops, healthcare and social activities.
Why is accessible housing becoming more important?
Only 19% of existing homes in England have step-free access, according to the Older People’s Housing Taskforce cited in the article. As more people work into their late 60s and beyond, accessible housing can help meet changing mobility and lifestyle needs.
What are park bungalow communities?
Park bungalow communities provide single-storey homes in managed residential settings. They can offer lower-maintenance living, communal grounds and access to local amenities, making them one potential option for people looking to simplify their housing arrangements.
How could downsizing affect the wider UK housing market?
When older homeowners move from larger family properties into smaller homes, the properties they leave can become available to younger buyers and growing families. This could help improve movement through different parts of the housing market.
Why might demand for single-storey homes increase?
More people are working later in life while also planning for longer-term accessibility and easier maintenance. This combination can increase demand for single-storey homes that provide convenience without requiring a traditional retirement-home environment.
What does the ageing workforce mean for property developers?
The trend suggests that developers may need to build more accessible, energy-efficient and low-maintenance homes in locations connected to transport, shops, healthcare and community facilities. Housing designed around longer working lives could become an increasingly important part of the market.
