The 5th edition of the ‘Care Homes Construction Market Report – UK 2019-2023’ will be of particular interest to care providers in the private and local authority sectors and construction / service companies involved in the long-term care sector.
The most significant change in the provision of residential care in the last 25 years has been ……
….. the much greater involvement of the private sector, with substantial growth in the number of private nursing home places replacing large numbers of NHS hospital beds for both geriatric and mental illness care.
In the longer term, the care homes sector is expected to outperform the wider healthcare market due to an acute undersupply of appropriate accommodation together with increasing demand from an ageing population.
Over the next 5 years, demand for care homes places is expected to far exceed the number of bed space additions provided. This is in part due to the decline in bed spaces provided by the public sector and private sector building not meeting the new demand. Care home development continues to focus on locations which are characterised by a strong self-pay market where higher fees provide investors with a stronger return on capital. However, finding appropriate development sites in these areas remains constrained by land prices and competition from house-builders, leading to a shortage of affordable sites.
Despite the challenges currently facing the sector, the private care homes sector continues to perform and attract new investment. The reduction in value of the sterling has made the UK market more attractive to overseas investors, particularly those from China and Malaysia. New investment is also driven by the growing number of older homes no longer fit for purpose and the increasing demand as the population ages. Additionally, the proportion of people entering care with specialist needs is increasing and is likely to remain a priority for operators, with a rise in the incidence of obesity, diabetes, dementia and other neurological disorders. In a time of constrained public-sector finances, the private sector will play an important role in updating existing and delivering new care homes. Because of these factors, the care homes sector is set to outperform the wider healthcare market in the long term.
Key issues covered:
- Structure and size of the UK care homes market in both the independent and voluntary/local authority sectors.
- Value of contracts awarded 2017 to 2019 and pipeline analysis to 2023 – UK and regional breakdown.
- Analysis of long-term demand in the care home sector, e.g. ageing population, bed spaces required etc.
- Analysis of leading Independent & Voluntary Care Providers (care homes/bed-spaces by operator and by region).
- Drivers of supply and demand in the care sector and key influences, e.g. analysis of care costs and funding.
Analysis of new and emerging areas of the care market, particularly care villages and extra care schemes. - Assessment of the increasing pressures facing the care homes sector, including an ageing population, staffing.
- Competition for available land from housebuilders, student accommodation and hotel developers.
- Detailed review of major construction and fit-out contractors and developers involved in care home construction -overview of contractor capability and contract experience.
The Care Homes Construction Market Report – UK 2019-2023 is available now and can be ordered here.
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