Sir,

Re: 'Later living' scheme could put extra strain on hospital services (Observer March 7), it is disappointing that Tenby town councillors seem to have fundamentally misunderstood the impact and the social and economic benefits of retirement housing on an area.

Far from placing greater strain on local health and social services, it is proven that well designed and managed specialist housing for older people, of all tenures, improves the health and wellbeing of its residents and results in fewer visits to GPs, less incidences of trips and falls, fewer nights spent in hospital and consequently less spending by the NHS locally.

In fact, the Institute of Public Care at Oxford Brookes University found that purpose-built specialist housing for older people saves the State on average £28,080 per year for each resident through reducing the need to access residential care or greater levels of support from the local authority.

The majority of new residents who move into retirement housing schemes come from within the same postcode. Hence, they are already using local health care services. This form of accommodation is nonetheless about helping residents to stay in their local area, near their family and friends, but in a form of housing that is much better suited to their needs. As such, many who choose this form of housing in their later years (average age of 79 years) report that their health actually improves - an output that should be celebrated, not least from the resident's perspective, but also because it reduces, rather than increases, the burden on the public purse.

With a growing elderly population, it is important that local communities recognise the needs of their older residents and support housing options which help them to live happier, healthier and longer lives.

Gary Day,

Development Director, McCarthy & Stone,

Oxford Road,

Bournemouth.