An overview of the long term elderly care sector

There are almost 19,000 care homes, nursing homes and residential homes providing adult and elderly care throughout the UK, of which most are operated by the independent sector (private for profit) or voluntary (not for profit) organisations. In 2017, 76 per cent of all care homes - and 81 per cent of care home beds - in England are provided by the private sector, with 19 per cent of care homes operated by the voluntary sector, four per cent of homes and three per cent of beds controlled by local authorities and just one per cent of homes and beds owned by the NHS.

The long term care sector provides a variety of forms of residential care, which include sheltered accommodation, nursing care, single care home accommodation and care village themed complexes. The requirement for good quality, purpose built care homes continues to outstrip supply creating unprecedented levels of demand for new facilities. 

Over the next five years, demand for care home places is expected to far exceed the number of bed spaces available. This undersupply of care beds is being underpinned by an ageing population and a healthy private sector market in the south east, which is the key driver of new build construction, leading to growth focused specifically in the ‘for profit’ sector.