US older care property investment firm’s proposed takeover of hundreds of homes run by operators, including HC-One and Barchester, could reduce competition in some areas, watchdog rules
The Competition and Markets Authority (CMA) has raised concerns that a series of major acquisitions involving hundreds of UK care homes could reduce local competition, potentially reshaping the sector in some areas.
In a Phase one decision published this week, the regulator said that deals involving US real estate investor Welltower – covering more than 600 care homes across operators including Barchester, HC‑One, Aria and Danforth – may lead to a ‘realistic prospect’ of reduced competition in some local markets.
The transactions primarily involve the purchase of care home property assets, with day‑to‑day operations continuing to be run by established providers. However, the CMA concluded that the scale and overlap of the portfolios mean that, in certain locations, the arrangements could limit choice for commissioners and families.
Concerns relate to both residential and nursing care, with the regulator highlighting potential impacts in several local areas where providers already operate in close proximity.
Welltower and its partners have been given until next Thursday (14 May) to offer ‘legally binding remedies’ – such as selling homes in specific locations – to address the competition issues. If satisfactory undertakings are not agreed, the CMA said it will escalate the case to a full Phase Two investigation.
Depending on the remedies proposed, some homes involved may be subject to further sales or changes in ownership structures, potentially introducing uncertainty in affected areas.
The ruling will be seen as significant by growing care home providers, particularly as large investors continue to expand their footprint across the sector. While consolidation and external investment have been key features of the market in recent years, the decision signals that future deals could face increased scrutiny where they risk reducing competition at a local level.
