Care home operators are showing continued appetite for growth and investment, with more than half considering an acquisition over the next 12 months, according to Christie & Co’s latest assessment of the UK care market.
The property specialist’s Care Market Review 2026 reports that 52% of operators surveyed are looking to acquire another care home during the coming year, while occupancy also remains healthy. More than two-thirds (69%) of providers reported occupancy levels of at least 90%.
The findings come against a backdrop of strong investor interest in UK healthcare property. More than £12 billion of transactions were recorded during 2025, which Christie & Co described as a record year, with overseas investment, particularly from the US, continuing to play an important role.
Buyer demand has remained strong into 2026. Deals brokered by Christie & Co attracted an average of more than five offers per instruction and achieved 97% of asking price on average during the first half of the year.
Small and medium-sized operators with between three and 19 homes were the most active purchasers, accounting for 38% of completed transactions. Christie & Co also reported increasing activity from first-time buyers with previous experience of working in the care sector.
However, the report highlights continuing pressure on operating costs and funding. Average local authority fee increases for 2026/27 ranged from 4.3% to 5.1% across Great Britain, with the proportion of operators receiving increases above 5% falling from 31% in 2025 to 22% this year.
This is leaving providers increasingly reliant on private fee growth and operational efficiencies to protect financial performance.
Sustainability is also moving further up the agenda. Some 43% of operators now have an ESG strategy, compared with 33% last year, while two-thirds intend to develop or strengthen their approach during the next 12 months.
Richard Lunn, Managing Director – Care at Christie & Co, said the market had maintained “positive momentum”, with strong interest from buyers, investors and lenders, although workforce retention and local authority funding remain important challenges for providers.
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