The UK care home and later-living market is experiencing unprecedented growth
The UK care home and later-living market is experiencing unprecedented growth, with investment volumes reaching record highs exceeding £4 billion over the past 12 months. This surge is driven by an ageing population and increasing demand for specialised care, supported by strong investor confidence, particularly from US capital[1][3][5]. Key trends shaping this booming sector include: - **Larger, purpose-built care homes:** The average size of new care homes is increasing, with many built to accommodate 60-80 residents to justify investment and improve operational efficiency. In 2024-2025, a majority of new care homes reflected this shift towards larger facilities, which are favored for their economies of scale and appeal to buyers[2][3]. - **Luxury and specialised care:** There is a growing market segment for luxury care homes offering enhanced comfort for affluent seniors, alongside increased demand for centres specialising in dementia care, complex medical needs, and culturally s...