ARCO welcomes UK Government response on leaseholder protections for Integrated Retirement Communities

The Associated Retirement Community Operators (ARCO), the national membership body for the Integrated Retirement Community (IRC) sector in the UK, has welcomed the Government's response to its 2025 consultation on strengthening leaseholder protections relating to service charges and other housing costs.

In its response, the Government recognised the distinct charging structures commonly used within the Integrated Retirement Community sector, where residents typically pay a fixed or capped service charge alongside an event fee, also known as a deferred management fee.

The Government confirmed that it will:

“prescribe a bespoke version of the annual report for leaseholders who pay a fixed service charge and event fee. As proposed in the consultation, this form will require landlords to disclose information on the nature of event fees being charged.”

The announcement provides greater clarity for leaseholders while acknowledging that Integrated Retirement Communities operate differently from mainstream housing and traditional retirement housing.

Sector response

An ARCO spokesperson said:

“ARCO and its members place a very significant emphasis on transparency, in particular ensuring informed choices before individuals move into an Integrated Retirement Community. ARCO and its members believe transparency is essential to maintaining consumer confidence in the sector.

All ARCO members are reviewed annually against the ARCO Consumer Code, which is approved under the Chartered Trading Standards Institute Approved Codes Scheme and helps ensure customers receive all relevant information and key facts before making a decision to move into an IRC.

ARCO has long supported strengthening transparency requirements for event fees in line with the recommendations made by the Law Commission in its 2017 review. Indeed, ARCO incorporated most of the Law Commission's recommendations into its Consumer Code. We therefore welcome the Government's decision to require disclosure of event fee information within annual reporting arrangements.”

Why this matters for leaseholders

Integrated Retirement Communities provide housing, care, support, wellbeing services and communal facilities specifically designed for older people.

Unlike many forms of mainstream housing, IRCs typically involve substantial ongoing investment in services, staffing, maintenance, communal facilities and long-term asset management. To support these services, many operators use a combination of:

• A fixed or capped service charge, providing residents with greater certainty over monthly costs.
• An event fee (deferred management fee), payable when a property is sold or transferred.
• Long-term operator responsibility for significant capital expenditure and operational risk.

This model allows many residents to defer part of the cost of living in an IRC until the point of sale, helping make specialist housing-with-care more accessible to a wider range of older people.

The Government's consultation acknowledged that specialist retirement housing often combines fixed service charges with event fees and that annual reporting requirements should reflect these arrangements.

ARCO's commitment to transparency

Transparency and informed consumer choice are central principles of the ARCO Consumer Code.

ARCO members are required to provide prospective residents with clear pre-contract information throughout the customer journey, including:

• Key facts about the scheme and tenure model.
• Information about service charges and event fees.
• Details of services, facilities and operator responsibilities.
• Information required under relevant consumer protection and housing legislation.

The aim is to ensure residents and their families fully understand the costs, benefits and obligations associated with moving into an Integrated Retirement Community before making a purchasing decision.

About ARCO

ARCO (Associated Retirement Community Operators) is the national body representing not-for-profit, charitable and private sector providers of Integrated Retirement Communities (IRCs) across the United Kingdom.

Integrated Retirement Communities combine age-appropriate housing with access to care, support, wellbeing services and community facilities. Evidence consistently shows that residents of IRCs benefit from improved wellbeing, greater social connection and reduced pressure on health and social care services.

Notes to Editors

Key facts

• ARCO represents operators of Integrated Retirement Communities (IRCs) throughout the UK.
• IRCs are specialist housing-with-care communities designed for older people.
• Most leasehold IRCs use a combination of fixed or capped service charges and an event fee/deferred management fee.
• Event fees are calculated according to a transparent contractual formula and are typically payable when a property is sold or transferred.
• The charging structure enables operators to fund long-term services, facilities, refurbishment programmes and capital investment while helping to keep ongoing monthly charges lower.
• ARCO members must comply with the ARCO Consumer Code, approved under the Chartered Trading Standards Institute Approved Codes Scheme.
• ARCO has supported the implementation of greater transparency around event fees and has incorporated most recommendations from the Law Commission's 2017 review into its Consumer Code.