Bath Charity’s £5m Almshouse Investment Spotlights a National Blueprint for Older Age Housing

Amidst a deepening national housing crisis and the urgent need to address social isolation among older people, a historic Bath charity has announced a landmark £5 million investment in affordable homes. St John’s Foundation is channelling the funds into creating and upgrading almshouses, a necessary intervention that provides a powerful local response to intense housing pressures. Simultaneously, it highlights the potential of a thousand-year-old charitable model to address one of modern Britain’s most pressing social challenges, even as systemic policy failures hinder its growth. In a city where housing affordability is among the worst in the UK, this significant philanthropic commitment serves as a crucial case study for the wider charity sector. It highlights the acute and growing shortage of specialist housing for an ageing population and raises questions about why such proven solutions face barriers to state support.

Building on a long-standing mission to support older adults, St John’s Foundation’s investment marks one of the most significant projects in its history. The £5 million, to be spent over the next three years, will fund the creation of up to 15 new, safe, and affordable homes for people aged 65 and over who are facing financial hardship. The project also includes extensive refurbishment and modernisation works at the charity’s existing almshouses at Combe Park, ensuring current residents can enjoy warm, efficient, and comfortable living spaces. Subject to planning approval, the new homes are expected to be completed by 2027. Once finished, St John’s will provide up to 109 almshouses, placing it among the top 2% of providers in the UK and demonstrating a profound commitment to its community.

The strategic importance of this project lies not just in the provision of housing, but in its focus on community. Catharine Brown, Chief Executive of St John’s Foundation, emphasised this dual benefit, stating, “We know how much of a difference almshouses make – not just by providing affordable housing, but by creating a community of friendship and support that reduces loneliness and gives people a stronger sense of belonging and purpose.” This vision is supported by local leaders, with Wera Hobhouse, MP for Bath, validating the project’s timeliness and importance. “St John’s Foundation has always played a vital role in our city, and this new investment will make a real difference to older people here in Bath, especially at a time when housing is such a challenge,” she said. “I look forward to seeing the positive impact this will have for generations to come.” This investment is a direct and necessary response to the critical local conditions that make Bath a microcosm of the UK’s wider affordability crisis, fostering a sense of connection and belonging in the community.

The situation in Bath and North East Somerset (BaNES) starkly illustrates the pressures that charities like St John’s are working to alleviate. House prices in the area are over 13 times the average salary, making it one of the least affordable places to live in the entire country. This is compounded by a supply of social housing that is below the national average—a local reflection of a national trend that saw the overall supply of affordable housing for older people decline by 5% in the five years to 2021. The area also has a record number of households living in temporary accommodation, surpassing the previous 20-year high. These acute housing pressures are set against a backdrop of demographic change, with the local population of people aged 65 and over expected to grow by 15% by 2028. This challenging local picture, however, positions the St John’s initiative not merely as a local project, but as a potential blueprint for charitable action nationwide, with the potential to inspire similar initiatives across the country.

St John’s investment serves as a powerful, contemporary example of the almshouse model—a thousand-year-old form of charitable housing that offers proven solutions to the UK’s nationwide challenges. As defined by The Almshouse Association, almshouses are a unique form of self-sufficient, low-cost housing held in trust for local people in need, with a shared emphasis on fostering companionship and community. Around 36,000 people across the UK currently live in these communities, which are managed by independent charities led by volunteer trustees. This model stands in stark contrast to the national housing landscape, where England faces an acute shortage of specialist housing for older people. The success of the almshouse model offers hope for a brighter future in the face of these challenges.

The scale of this national shortfall is immense. Projections indicate that by 2035, 29% of England’s population will be over 60, yet an estimated 38,000 new rental homes for older people are needed annually to meet current demand, of which 21,000 should be for social rent. This national deficit places a significant onus on charitable foundations with housing missions to scrutinise their own assets and strategies. The failure to provide appropriate housing has substantial social and economic consequences, with poor and ill-suited housing estimated to cost the NHS £1.4 billion a year. A staggering £513 million of this is spent on first-year treatment for those aged 55 and over living in the poorest quality homes; research suggests that appropriate specialist accommodation could generate annual savings of around £3,000 per person.

It is into this gap that charities are increasingly stepping. Yet a critical paradox remains: while the almshouse model offers a proven, cost-effective solution, government policy actively prevents many from accessing key funding streams. According to The Almshouse Association, most of its member charities are excluded from affordable housing funds, such as Section 106 agreements, because the government’s National Planning Policy Framework is designed for larger registered housing associations, rather than small charities. This systemic barrier makes philanthropic funding, such as that from St John’s, not only beneficial but essential, exposing a policy failure that undermines a thousand-year-old solution to a modern crisis.

St John’s Foundation’s £5 million investment is far more than a local housing project; it is a significant act of modern philanthropy that provides a tangible model for community-focused living in later life. The initiative powerfully demonstrates the vital role that charities can and must play in addressing society’s most complex challenges, particularly the housing crisis affecting older adults. It casts a sharp light on the systemic failures that force charities to step in where policymakers overlook effective, long-standing solutions. As the UK’s population continues to age, projects like this should not remain isolated examples of charitable excellence. Instead, they must serve as a catalyst for a much wider conversation among policymakers about how to better recognise, fund, and support the almshouse movement. This proven, compassionate solution has been a cornerstone of British communities for a millennium, and St John’s Foundation’s investment is a shining example of its potential impact in the modern era.