U.K. care home sector offers growing opportunity
The U.K. care home sector is facing a national crisis, due in part to a net loss in U.K. care homes and beds with further closures all but inevitable, according to Knight Frank. The crisis and imbalance of demand outstripping supply has driven increased investor appetite, however, as it becomes clear there is a need for future-proof new-build care facilities, meaning a significant opportunity remains for developers and investors to capitalize on the sector. The United Kingdom’s aging population is forecast to rise from 11.6 million in 2016 to 12.9 million by 2021, which will spark development interest.
Knight Frank’s U.K. Healthcare Development Opportunities 2017 report has identified a decrease in the number of registrations of both new homes and new beds, which, combined with the long-term trend of increased deregistrations, caused a net loss of 166 homes and 2,612 beds across the U.K. market in the 12 months to September 2016, with bed losses most severe in Gr