Market overview
BREEAM ratings sought to ensure energy efficiency. While many SME operators paused
acquisitions post-pandemic, cost stabilisation and improved trading conditions have reignited interest, leading to strong competition for prime, consented sites and a record H1 2025 in care home land transactions at Christie & Co. Forward-funding structures are
also returning to the sector with more prevalence, and such deal volumes are expected to increase over the next year. Although elevated costs have pressured land prices, improved operating performance and valuations have helped maintain land values. Rising private fee levels and easing inflation have positively impacted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) and, therefore, values. Senior living developments remain
subdued due to high build costs and a softer housing market, but signs of recovery are emerging. Demand for inclusive, future- proof housing with communal amenities is also rising, driven by lifestyle changes and longer life expectancy.
Transactional analysis In an analysis of the transactions our care team has conducted over the past year, it is clear that deal activity surged, with completions at their highest level, and our
Instructions by care home size
pipeline 24 per cent ahead of where it was in 2024. Forty-nine per cent of deals involved homes with 20 to 39 beds, with demand also for homes with over 60 beds. A notable shift occurred in the profile
of homes entering the market, with a rise in smaller care homes (under 20 beds) making up 38 per cent of instructions, an increase from 12 per cent in early 2024. Larger homes (over 60 beds) comprised just 5 per cent of instructions, down from 15 per cent, reflecting a shortage of purpose- built facilities. Homes with 20 to 59 beds accounted for 56 per cent of instructions, down from 73 per cent in 2024.
CMR Instructions by care home size First-time buyers represented 17 per cent of deals in H1 2025, up from 11 per cent in 2024 and just four per cent in 2023. Small and medium-sized groups (those with three to 19 homes) were the most active buyers (32 per cent of deals), followed closely by independent operators (those with one to two homes) at 31 per cent.
CMR Completions by buyer type Homes sold with vacant possession rose to 21 per cent in 2025, up from 13 per cent in 2024. Of these closed homes, 60 per cent remained in care use, 24 per cent were converted to residential dwellings, and 16 per cent were repurposed for other uses. This high closure rate in the sector is something that we expect will continue.
CMR Analysis of ongoing purpose For the report, we also conducted and analysed a Freedom of Information Act survey, covering all 174 local authorities across England, Wales, and Scotland. It revealed an average residential fee increase in England of 8.6 per cent compared with nine per cent in 2023/24. There were some notable fee rate uplifts in certain local authorities, albeit from a low base level. The burden on the self-funded client base is likely to rise, with the majority of providers achieving private fee increases of between five per cent and 10 per cent, sometimes more.
Analysis of ongoing purpose (2023-2025)
Sentiment survey In the summer of 2025, we reached out to a cross-section of local and regional care providers throughout the UK to get their views on a range of topics. The key findings from this include:
January 2026
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