Private sector failing to meet rising care home demand


A shortfall in care home bed spaces is continuing to increase in the UK as private sector building fails to offset the decline in public sector provision.

The Care Homes Construction Report – UK 2017-2021 Analysis, published by AMA Research, predicts a shortfall of 28,000 beds by 2025.

Hayley Thornley, Research Manager at AMA Research, said: “Despite the challenges currently facing the sector, the private care home market continues to attract new investment as the value of the sterling has made the UK market more attractive to overseas investors.

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“In the longer term, the care homes sector is expected to outperform the wider healthcare market due to an acute undersupply of appropriate accommodation together with increasing demand from an ageing population, with the number of people aged over 65 in the UK forecast to be 50% higher in 2035 than it was in 2010.”

The report forecasts demand will increase by around 9,000 beds each year over with development expected at just 5,000-6,000 beds per year.

The report highlights the polarisation of the care home market in recent years with developers focusing on locations with a strong self-pay market.

AMA says major reforms to the way social care is funded, which are expected to come into operation in April 2020, could have a positive impact on the market.

To order to report online, go to or call 01242 235724.

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The author Lee Peart

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