ARCO is the national membership body for charity, not-for-profit and private operators of modern housing-with-care schemes for older people - known as Integrated Retirement Communities (IRCs).
None of the organisations who came under scrutiny in the programme are ARCO members.
The Tonight programme also featured residents of the ExtraCare Charitable Trust - a member of ARCO - and we are pleased the programme explicitly recognised that different models of older people's housing exist.
Members of ARCO use a different operating model to retirement housebuilders and take a direct and substantial financial interest in units maintaining their value and selling quickly.
Independent evidence shows resale values among IRCs with ‘skin in the game’ have largely tracked house price inflation over the last 30 years.
ARCO believes it is vital the public is informed that not all models of older people's housing are the same, and different models lead to different outcomes for families.
Michael Voges, Chief Executive of ARCO, said:
“It’s important that operators have real skin in the game, and we are pleased that Tonight on ITV showed different parts of the older people's housing sector operate in different ways.
ARCO and its members believe there is an opportunity to build on what already works in the UK and overseas, and set out a positive vision for the future focused on:
- Alignment between residents and operators - existing IRC charging structures see operators retain a financial stake in the long-term success of their communities, including resale. ARCO's proposals build on this approach, ensuring that if resale values fall, the financial consequences are shared between operators and residents.
- Long-term responsibility for operators - IRC operators take responsibility for major capital expenditure and protect residents from unpredictable increases in service charges, providing greater financial certainty. These principles are reflected in ARCO's proposals for future tenure models.
- Stronger consumer protections - ARCO has long championed consumer protection via its CTSI-approved Consumer Code. But we believe IRCs ultimately need dedicated legislation, as already exists in other countries.
- A greater focus on affordability - International experience shows that affordability is key to growing IRC provision. We believe the UK needs to move closer to proven international approaches to tenure, charging and regulation that have brought this form of housing within reach of a much wider population.”
NOTES TO EDITORS
- 'Buyer Beware: Retirement Properties' was broadcast on ITV1 at 7.30pm on 08 October 2026. It can be streamed on the ITVX Player. A written summary is available here.
- ARCO provides a voice for the IRC sector with government and sets standards for the sector via the ARCO Consumer Code, which has been approved under the Chartered Trading Standards Institute’s Approved Code Scheme. For more information, see: www.arcouk.org
- IRCs are modern housing-with-care schemes for older people – modern because they embrace a holistic approach to services, facilities, community and wellbeing. All IRCs include: 24/7 on-site support; a restaurant/bistro/café, usually with a bar; individual units with their own front door, kitchen and lounge; communal facilities such as gyms, craft rooms, lounges and gardens; and, personal care at home if it is required. The average age people move into an IRC in the UK is around 80 and the average duration of residence is eight years. All tenure types are found in the IRC sector.
- Like operators of modern housing-with-care schemes in other countries, most IRC operators offer deferred management fees which are payable as a percentage of the resale value when a property is resold, and enable operators offer lower monthly management fees and take on long-term responsibility for maintenance and investment. Deferred management fees give operators a direct financial incentive in the resale value of a scheme ('skin in the game'). Many operators also use fixed monthly management fees that only rise in line with a pre-agreed index.
- ARCO has called on the government to adopt its 'Blueprint New Zealand' proposals which aim for provision in the UK to catch-up with the IRC sector in New Zealand, where two of the three largest housebuilders are IRC operators. International experience shows that affordability is key to growing the Integrated Retirement Community sector, with models that enable many more older people to afford both to move in and to live there over the long term. We believe the UK needs to move closer to proven international approaches to tenure, charging and regulation that have brought this form of housing within reach of a much wider population. ARCO's proposals include
- Mandatory fixed management charges removing risk from residents
- Enhanced consumer protection including new routes to redress
- Updated legal agreements for each new resident that are afforded higher protections in law
- Aligned interests on resales – operators taking on a direct financial stake in the resale value of schemes (‘skin in the game’), aligning their interest with residents.
