Key Trends Shaping the UK Care Market

The UK care sector is moving towards 2027 with growing confidence. Christie & Co's Care Market Review 2026 shows a sector supported by strong investor demand, healthy occupancy levels and an increasing appetite for growth. Bringing together market data and insights from providers across England, Scotland and Wales, the report identifies several key trends that are shaping the future of the sector. Here are our key takeaways.

Operators focused on growth

One of the strongest indicators of assurance across the sector is operators' appetite for expansion. More than half (52%) of providers we surveyed said they plan to acquire another care home in the next 12 months, reflecting improving trading conditions, sustained demand and a positive outlook for the future. As businesses look to strengthen their portfolios, growth is firmly back on the agenda.

Investor demand remains at record levels

Investor interest in the care sector remains high, with healthcare real estate transactions exceeding £12 billion in 2025, making it a record year for the market. Overseas investors continue to play an influential role, with US-backed capital accounting for more than two-thirds of foreign investment into the UK care home sector over the last five years.

Alongside this, new management contract structures are giving operators greater flexibility to unlock capital, support growth plans and attract a broader range of investors.

Competition for quality assets continues

Competition for quality care homes remains strong, highlighting the depth of buyer demand across the market. During the first half of 2026, we received an average of more than five offers for each care business brought to the market, with deals achieving, on average, 97% of the asking price.

Small and medium-sized operators continue to be the most active buyers, reflecting their confidence in the sector. Another notable trend is the rise in first-time buyers, many of whom have extensive industry experience and are now taking the step into ownership.

Land development remains essential

As demand for care continues to grow, operators are increasingly focused on developing modern, fit-for-purpose facilities. Sites with planning consent remain in high demand, and despite a challenging planning and construction environment, we expect to transact around 1,200 consented and new-to-market care home beds by the end of 2026.

This demand is being seen across the country, including the South West of England, where interest in development opportunities remains strong. Recent examples, such as the sale of a consented 70-bedroom care home scheme in Honiton, Devon, highlight the continued appetite for well-located development sites.

Investing in a More Sustainable Future 

We found that sustainability is taking on greater importance for care operators, with our survey results showing that 43% now have an ESG strategy in place, up from 33% in 2025, while around two-thirds plan to strengthen their approach over the next 12 months.

For many operators, ESG is no longer just about meeting environmental targets. It's becoming a practical way to reduce costs, support staff retention, improve resident wellbeing and strengthen long-term business resilience.

The Opportunity

This year’s report points to a sector that is resilient, ambitious and focused on growth. Demand for care remains strong, investors continue to see long-term value in the sector, and many operators are actively pursuing expansion opportunities.

While challenges around staffing, funding and rising costs remain, confidence across the market is growing.

To discuss the care market in more detail, get in touch with Simon Harvey, Simon.Harvey@christie.com  or 01392 285 603