Market analysis The average size of an HC-One home is
about 50 per cent larger than the average home, and they have a much stronger geographical bias in the northern England, with over half of their homes located there against 30 per cent of all homes. Conversely, only 18 per cent of HC-One homes are in London and southern England versus 39 per cent of all homes. There may well be an HC-One home
available should you be looking to buy. However, the decision as to which homes are sold will be down to vendor, and it may not meet with your particular brief, and they are looking to ensure that all buyers can prove to be strong within the relevant local area.
Who will be the buyers? So, who will be buying into the care home market and why? After all, the government is still dragging its heels with its promise to ‘fix social care’ once and for all, and in providing long-term assurances and sufficient investment for care home operators. Well, in addition to the 29 per cent of
existing providers looking to add to their portfolios, there is a lot of interest from outside the industry. Care homes have had their own massive issues over the last few years, but two other major sectors have been also been hit hard. For a number of years, online sales
have been crippling high street retail across the country, with many big brands disappearing or shrinking. The most recent that come to mind are Debenhams and TopShop, who have been respectively purchased by online brands Boohoo and Asos, and so will never return to your local shopping centre. The hospitality sector has also been
hard hit, and at the current time we cannot be sure how many pubs, clubs and restaurants will re-open in May when lockdown rules are eased. That means a reduced investment interest in both of these industries. That means any businesses wishing to
invest in bricks and mortar are running out of opportunities. One thing that is certain is a massive growth in the number of us who will need care in our older years, and that is why many external investors are knocking on the health and social care door.
New investors will obviously require
the continuation of existing management support from the vendor during a transition period or will look to a qualified third party management company to undertake that role. The author will continue to monitor
the ongoing situation and I am keen to revisit the subject in 12 months. More information on the care home for older people market in England can be found in CSI Market Intelligence’s recent report, Say Hello Wave Goodbye 2020, which can be accessed for free at www.csi-
marketintellignce.co.uk.
Data included within the editorial includes care homes on the CQC register that are designated as caring for older people, and have ten beds or more, and have required a new CQC registration due to change of legal entity. Dates of sales are based on the deactivation date of the selling home. Some share sales where the legal entity is retained, and there is simply a change of shareholders without a change in CQC registration are not included.
Mike Short TCHE
Mike Short is founder and director of CSI Market Intelligence, which works with businesses who are looking for opportunities in the social care sector, including identifying purchasing opportunities and measuring local supply, demand, and demographic information. Mike has published a number of reports and editorials into the market over a number of years. Living in Worthing, West Sussex, with his wife of over 40 years, Sue, who is a care trainer, they have three grown-up children and - at the last count - five grandchildren and three ‘grand-dogs’.
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www.thecarehomeenvironment.com • April 2021
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