CARE HOME SECTOR REMAINS ATTRACTIVE FOR INVESTORS DESPITE ‘BREXIT VOLATILITY’

Care homes in the UK continue to be an attractive proposition to investors, with global property advisor Knight Frank stating that as a sector it is the ‘least affected by Brexit volatility.’
In their 2018 Care Home Trading Performance Review, Knight Frank said that the sector remained resilient despite uncertainty, and revealed that occupancy rates in care homes are at a record high of 89.4%. For the seventh consecutive year, average weekly fees have also risen by 3.7% to £773, with profitability measured by EBITDARM standing at 28.3%.

A HIGHLY ATTRACTIVE SECTOR

Julian Evans, Head of Healthcare at Knight Frank, said: “Despite operational challenges, the care home sector remains a highly attractive investment. In our view it is the one that is least affected by Brexit volatility as demand is typically driven by domestic factors.

“The defensive characteristics of the sector and long-term income combined with the fundamental strength of the occupational market makes the care home sector appealing to those investors wishing to diversify their asset portfolios.”

CARE HOME OCCUPANCY

Demand for care home beds continues to outstrip supply, as life expectancy drove the sixth consecutive rise in care home occupancy. There was a total of 226 care home closures in the last year, equivalent of 6,740 beds. Knight Frank also reported that 85% of care home stock was over 40 years old and would need refurbishment and future proofing of existing services.

Julian Evans added: “We predict that despite current economic uncertainty and rising costs, care homes will remain a compelling asset class for investors as they seek to balance risk and return.”

As specialists in the care home sector, we are aware of the range of requirements residents and care home owners may have to ensure that buildings are fit for purpose. As a solution provider, we can help care home owners in the following areas:

  • Extensions/renovations and conversions
  • External maintenance
  • Specialist bathing and level access shower rooms
  • Mobility equipment and patient handling
  • Sling assessment service
  • Asset register
  • Workshops
  • Care home equipment rental
  • Medical equipment rental

We work with you to provide affordable healthcare, rehabilitation and care home solutions tailored to your needs, whilst maximising bed spare and return on investment.

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