Market analysis


has been one of the worst hit. Many care workers were launched head-first into this pandemic and coped remarkably well despite some suffering a loss of income due to self-isolating, childcare issues and some sadly lost a loved one. The CWC launched the Covid-19


Emergency Fund in March 2020 to provide financial support to care workers and have paid out almost £2m in grants to care workers in need.


Being sustainable The focus on sustainability for healthcare providers is more important than ever. Previously, we have seen under floor heating, PIR (passive infrared) occupancy light sensors, low-energy LED light bulbs and sensor water taps to prevent waste, but the market has evolved. Within the design, we now see electric


vehicle charging points, heat recovery ventilation and even solar generating roof tiles but I feel there is more to come on this over the coming years.


Is this enough? The World Green Building Council has set a target for all new buildings to be ‘net zero operational carbon’ with 40 per cent less ‘embodied carbon’ by 2030. The government has also announced a target for net zero emissions by 2050. Therefore, anyone building a new


home needs to take account of these dates and ensure the home will be ‘future- proofed’ and compliant. At the fast pace the market is moving, I wonder when we will see the first ‘eco care home ‘in the UK?


What does it cost? Bigger homes built on expensive land with sustainability and technology included does not come cheap. Coupled with this, there have been reports of supply chain issues on the back of the pandemic, with mortar silos, bricks and blocks all in short supply across the construction industry. There has been a sharp rise in the cost of materials in the last six months, which


is pushing up the overall construction costs. Build costs are now anything from £110,000 per bed, and that is providing you can find a contractor with capacity to build this year. With a rise in overall project costs,


the focus has to be on ensuring the end-values continue to stack up. Even in the midst of a global pandemic, the healthcare sector has received a significant level of investment and continues to do so. With a growing pool of investors and asset types, healthcare transaction volumes have increased year-on-year since 2016 and were up 55 per cent in 2020. With airports, car parks and retail


units all closed during the pandemic, the healthcare sector has remained resilient despite the challenges and investment yields have held strong at 6.3 per cent in 2020, matching the long-term average. With testing economic conditions still ahead in 2021 and beyond, investors are expected to seek stability and healthcare fits this mould. Despite an increase in costs, providing


the asset being developed is future proofed and best in class for the location, developing a new build home is still very much the way forward, providing much needed homes to plug the 10,000 new beds needed every year until 2030


Despite an increase in costs…developing a new build home is still very much the way forward, providing much needed homes to plug the 10,000 new beds needed every year until 2030


November 2021 • www.thecarehomeenvironment.com Graham Harper


Graham Harper is senior director of health and social care at Virgin Money. Graham has over 18 years of banking experience, much of which has been spent supporting a wide variety of health and social care businesses including care home and specialist care providers across the UK. The sector is key to the bank’s portfolio and represents an increasing area of lending and support within the SME market.


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in order to meet demand and avert a potential bed crisis. As an avid cycling fan, it was great


to see Jason Kenny become the most decorated British Olympian of all time in Tokyo, with cycling dominating the top four positions in the British medal table. Like Kenny, care home operators,


developers and investors have to keep pushing the boundaries in order to evolve and dominate. So, I wonder if Kenny will go on to participate in Paris 2024 and how far the care home market will have evolved in the next three years?


TCHE


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