AMA Research has published the 6th edition of its Care Home Construction Market Report – UK 2021-2025, which contains an in-depth analysis of current and future building activity in the residential and nursing care home market, including both private and not-for-profit sectors.
Until 2020, the UK care home market demonstrated some of the highest levels of construction activity within the healthcare industry, due to the country’s ageing population and the corresponding growth in demand for bed spaces. Much of the growth within the industry was driven by the rapid expansion of the private/self-pay market, which resulted in increasing number of premium care homes offering a wider range of amenities and facilities, as well as attracting the attention of many private sources of investment.
However, the industry experienced a turbulent period during 2020 as the Covid-19 pandemic struck the UK. With ;mortality rates especially high amongst care home residents and the older age groups in general, occupancy levels fell during the year and the high demand for bed spaces has been temporarily eased. Many care homes came under increased financial pressure as costs increased, for example, to purchase personal protective equipment (PPE) or to cover for absent staff either sick or self-isolating. The lessons learned from dealing with Covid-19 may prompt the government to hasten its long-delayed reforms into how social care is funded.
In the longer-term, underlying demographic trends mean the demand for additional capacity within the care home market is likely to start rising again within the next couple of years. Covid-19 is likely to drive the growth in demand for larger and better-equipped care homes, as well as accelerating the adoption of digital technology throughout the industry to enable operators to function more efficiently. The pipeline for future development remains relatively strong – especially in parts of the UK such as the South East – while the next few years are expected to witness a growth in the number of alternatives to care homes, such as extra care facilities and retirement villages.
The Care Home Construction Market Report – UK 2021-2025 is available now and can be ordered here.
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