U.K. care homes face national bed crisis

The COVID-19 pandemic has highlighted the need for investment and innovation in the U.K. healthcare property sector, with long-term demand due to an aging population combined with the accelerated closure of underperforming assets leading to a national bed crisis in care homes, according to Knight Frank.

Knight Frank’s research identifies a potential 6,500 care homes at risk of closure over the next five years, equating to 140,000 beds. The shortage will be exacerbated by the increased demand for care homes by 2050, which will see a national bed crisis in the United Kingdom as the share of people over the age of 80 is expected to surge over the next 30 years, with one in 10 adults set to be over 80 by 2050, compared to one in 20 currently.

Estimating that the United Kingdom requires in excess of £15 billion ($18.5 billion) to upgrade existing beds in order to future-proof for the aging population, Knight Frank states the COVID-19 pandemic has accelerated trends that