International real estate advisor Savills reports that more than £12 billion ($16 billion) of capital was deployed into U.K. healthcare real estate in 2025, the highest annual total on record. The adviser states that investor demand extended across the full spectrum of healthcare last year, from curative care to care homes.
Care home investment volumes in 2025 were fueled predominately by U.S. REITs, supported by their lower cost of capital and ability to utilize REIT Investment Diversification and Empowerment Act (RIDEA) management-contract structures. Savills states that in 2025, U.S. REIT Welltower alone deployed more than £7 billion ($9.6 billion) in the sector, including one of the largest care home transactions ever completed, with its acquisition of Barchester Healthcare (284 elderly care assets including developments) for £5.2 billion ($7.1 billion), structured under long-term RIDEA and triple-net lease arrangements. Savills expects the United Kingdom to remain Eur
