The UK care home market has attracted record levels of investment volumes of £4 bn over the past 12 months, with US investors accounting for more than 70 per cent of transactions, up from 56 per cent in 2024.
According to real estate services firm Cushman & Wakefield, transactional volumes in the sector reached over £1.75 bn in the first half of 2025 – the highest ever total for a six-month period, and 108 per cent higher than the equivalent period in 2024. The firm notes that Q1 2025 saw care home occupancy reach nearly 90 per cent, driven by consistent demand from to the UK’s growing ageing population.
Early indicators suggest that April’s National Living Wage and Employers’ National Insurance increases – combined with typical timing of annual operator fee uplifts – are driving up average weekly fees. According to Cushman & Wakefield, average weekly care home fees currently stand at around £1,260 – the highest rates on record. Preliminary data suggests that they continue to rise.
The firm has highlighted what it calls ‘high-value portfolio acquisitions’, including the £640 million acquisition of UK care home owner Care REIT plc by US-based real estate investment trust CareTrust REIT.
Jack Kelleher, data and analytics associate, healthcare at Cushman & Wakefield, said: “Interest and activity in the UK care home market have skyrocketed in the last 12 months, driven in part by strong appetite from US investors.
“US funding sources have dominated the sector in 2025, reinforcing their strong and growing presence with investment across asset grades and structures. Occupancy levels remain robust due to the UK’s ageing demographic profile. Average weekly fees showed steady year-on-year growth, supporting resilient profit margins across all asset grades.
“However, Q2 cost headwinds – notably the National Insurance and National Minimum Wage increases – will impact margins across the sector. In many cases, this additional cost will be passed on, meaning residents are likely to face higher average weekly fees as a result.”
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