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More than 80% of UK care homes need upgrading, data finds

Around 81% of the UK’s care homes are older than 20 years and need upgrading, according to the latest research from Knight Frank.

Knight Frank’s Healthcare Development Opportunities report also found the supply of beds in the UK healthcare market reduced for the first time by 177, despite a predicted shortfall of more than 200,000 beds by 2050.

The report showed the UK care home market consists of older, converted stock that, in some cases, may be considered obsolete. Researchers said this comes down to size and lack of ensuite or full wet room facilities.

As such, researchers highlighted an “opportunity” for those “willing to repurpose and reposition the current supply”.

During 2022, the market experienced a circa 15% dip in the number of new care homes completed.

However, Knight Frank underlined a “promising start” to 2023, likely boosted by the delayed completion of some of the homes that were due to complete last year.

Last year, around 10,000 beds were granted planning approval. This number represented a mix of refurbishment and extensions to existing stock along with new-build schemes.

Completion of those schemes will add to a circa 480,000 existing bed supply.

Elsewhere, the agent’s Development Hotspots Index showed the South East and East of England dominated the rankings for locations offering the best prospects for care home development. This included Greater London, which had the second-highest index score this year.

Julian Evans, head of healthcare at Knight Frank, said: “The UK elderly care market is at risk of reaching capacity by the end of the decade, and this is a worrying projection.

“Not only must we build more care homes, but we must take action to support standing stock to reduce the level of home closures, which continues to work against the delivery of new homes as we attempt to grow the supply level.”

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