Key Points
- The UK Government is considering a New Zealand-style tenure model for Integrated Retirement Communities (IRCs) as part of the forthcoming Commonhold and Leasehold Reform Bill.
- Housing Minister Baroness Taylor confirmed she is actively examining proposals put forward by ARCO (Associated Retirement Community Operators).
- The Government is exploring whether the Bill should be amended to accommodate specialist housing-with-care models for older people.
- New Zealand is widely regarded as an international leader in housing-with-care, with approximately 15% of people aged over 75 living in retirement village communities.
- Industry leaders say adopting lessons from New Zealand could expand housing choice, strengthen consumer protections and accelerate the development of housing-with-care in the UK.
Government Exploring New Zealand Approach to Older People's Housing
The UK Government has confirmed it is considering a New Zealand-style tenure model for Integrated Retirement Communities (IRCs) as it develops the forthcoming Commonhold and Leasehold Reform Bill.
Speaking during a House of Lords debate on 20 July 2026, Housing Minister Baroness Taylor said the Government is examining international examples, including New Zealand's retirement village model, to determine whether changes to the legislation may be required.
Baroness Taylor said:
"I am exploring the models ARCO has advocated, so that we can look into developments in this area, such as housing in New Zealand that is working particularly well. I want to explore such models so that we can see whether we need to amend the drafting of the Commonhold and Leasehold Reform Bill to facilitate those types of approaches."
The comments represent one of the clearest indications to date that the Government is considering a bespoke legal and tenure framework for specialist retirement housing within wider leasehold reform.
What Are Integrated Retirement Communities?
Integrated Retirement Communities (IRCs) are specialist housing-with-care developments designed for older people. They combine independent living with access to on-site care, support services, health and wellbeing facilities, and community amenities.
ARCO, the national membership body representing the UK's Integrated Retirement Community sector, has argued that standard residential leasehold and commonhold structures do not always reflect the unique operating and funding models used in housing-with-care schemes.
The organisation has called on the Government to examine international best practice, particularly the regulatory and tenure framework used in New Zealand.
Why New Zealand Is Seen as a Model
New Zealand has one of the world's most developed retirement village sectors.
According to ARCO, around 15% of people aged over 75 live in housing-with-care communities, while two of the country's three largest housebuilders are retirement village operators.
Supporters of the New Zealand model point to three key factors behind its success:
- Strong consumer protection for residents.
- A dedicated tenure structure tailored to retirement communities.
- A clear and consistent regulatory framework.
Industry representatives believe these foundations could help the UK significantly increase the supply of specialist housing for older people while providing greater housing choice and support.
Commonhold and Leasehold Reform Bill
The Government has committed to introducing a Commonhold and Leasehold Reform Bill that will establish a new legal framework for commonhold ownership and make commonhold the default tenure for new flats.
The proposed reforms are intended to reduce reliance on leasehold and create a simpler ownership structure for future residential developments.
Baroness Taylor told peers that the Government expects to make substantial progress on the reform programme over the next year.
She said:
"We expect to make good progress on this whole programme within the next year, and I will update the House within that timeframe with a view to implementing changes by the end of this Parliament, and sooner where we possibly can."
Industry Reaction
Mick Laverty, Chief Executive of the ExtraCare Charitable Trust, welcomed the Minister's comments.
He said:
"Integrated Retirement Communities transform the lives of older people, but the sector requires a bespoke solution. We are pleased the Government is recognising the distinct needs of older people's housing and exploring a New Zealand-style tenure model as part of the Commonhold and Leasehold Reform Bill."
Michael Voges, Chief Executive of ARCO, said the New Zealand experience should act as a blueprint for UK policymakers.
He said:
"Strong consumer protection, a bespoke tenure model and a clear regulatory framework have been the building blocks of New Zealand's success. The UK has a significant opportunity to expand housing-with-care provision and provide older people with more choice over where and how they live."
Cross-Party Support for Further Exploration
Lord Best, Co-Chair of the All-Party Parliamentary Group (APPG) on Housing and Care for Older People, said Baroness Taylor's appointment brings renewed focus to housing policy for older people.
He welcomed the Minister's willingness to consider recommendations from the Older People's Housing Taskforce and explore alternative models for later-life housing, including proposals based on New Zealand's retirement village sector.
Parliamentary Evidence Supports Differentiated Approach
Baroness Taylor's comments follow pre-legislative scrutiny of the draft Commonhold and Leasehold Reform Bill by the House of Commons Housing, Communities and Local Government Committee.
In its report, the Committee concluded that:
"...the care model and complex financing of some retirement housing, particularly Integrated Retirement Communities, may justify a different approach to other leasehold housing."
This assessment reinforces growing recognition among policymakers that specialist housing-with-care developments may require distinct legal and tenure arrangements from mainstream residential housing.
What This Means
The Government's consideration of a New Zealand-style tenure model signals increasing recognition of the role that Integrated Retirement Communities can play in addressing the UK's ageing population and housing challenges.
If adopted, a bespoke framework for retirement communities could:
- Support growth in specialist housing for older people.
- Improve consumer protections.
- Increase housing choices for older residents.
- Provide greater certainty for operators and investors.
- Align UK policy more closely with international best practice.
The announcement comes ahead of the expected Long-term Housing Strategy and suggests that housing and care for older people may play a more prominent role in future housing policy.
