Care homes warn Chancellor of ‘catastrophic collapse’ over living wage

Knight Frank issues stark warning

Leading property specialists Knight Frank have issued a stark warning for the future of the care home sector as they look ahead to 2018.

Julian Evans, head of healthcare, says the UK care market is facing an imminent crisis as the sector struggles to cope with a national shortage of beds. But investors still see care homes as an attractive investment

Julian Evans

“Our research estimates that circa 6,600 care homes are at risk of closure over the next five years, which equates to 140,000 beds,” he said.

“It will cost approximately £15 billion to build the new homes to replace these beds. We believe that there is c£3.5 billion of UK private equity and c£20 billion of overseas private equity looking to enter the care home market. 2018 could be the year this is at last deployed.

“I also believe that the infrastructure funds and global investors will start to acquire UK healthcare and hotel portfolios as seed platforms for REIT targets.”

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