Capacity
density isn’t always keeping up with the demographic need. To secure long-term financing for new
or expanded care facilities, providers must therefore demonstrate not only that the demand exists, but that they have a credible route to acquire the necessary planning consents, a strategy to recruit and retain staff, and the operational foundations and management capability to deliver – giving lenders confidence in the long-term viability of an investment. Navigating the complexities of the sector
therefore requires collaboration between experienced operators and a strong advisory network, with the expertise to assess projects in the context of the care market, rather than through occupancy or property value alone. These specialist partners will be able to provide the right level of support throughout the lifecycle of an asset – from acquisition and new development to modernisation and retrofitting, as well as investments in technology, sustainability and staff training and development. This is where relationship-led banks
can add real value, bringing sector-specific expertise and an understanding of how transactions need to be structured to help projects progress as they need to. We are already seeing the continued need for investment, having provided £60 m across 41 healthcare loans last year, with almost three-quarters of our lending enabling providers to expand their operations.
People power Social care is powered by the commitment and capability of owners, operators, management teams, and frontline staff. These strong operational foundations are fundamental to successful expansion; however, the workforce challenge is particularly acute in some of the rural and coastal communities that are already experiencing gaps in care. As older populations have grown,
younger working-age residents may be drawn towards areas offering greater employment opportunities, more affordable housing, and better connectivity. For care providers, smaller local labour pools can be compounded by limited public transport and the cost involved in travelling to more remote facilities. Addressing future care provisions
therefore means thinking about what will attract a strong workforce, as well as ways to increase the number of beds. Local authorities need to consider what will attract
Care providers are already
demonstrating what investment can deliver in practice
and retain talent in these underserved communities – from transport and housing, to training and career development –to help maintain standards and ensure the best quality care can be delivered.
Going green With a government target to reach net zero by 2050, the social care sector has its own part to play in the UK’s transition towards a low carbon economy, and relationship- led, community-focused finance can also unlock routes to green lending. Many responsible finance providers now
offer specific loan packages designed to help customers achieve their sustainability and decarbonisation objectives, providing beneficial lending terms to organisations looking to reduce their environmental footprint. Green loan tariffs can support energy
saving and carbon reduction projects – including low carbon heating, improved insulation, small scale renewable energy, and climate resilience measures. These investments can also deliver practical operational benefits, from reducing energy consumption and running costs, to improving resident comfort and extending the long-term resilience of the asset. Many banks will offer additional
incentives for eligible customers with assets that have an energy performance certificate’ (EPC) rating of B and above – highlighting the increasing importance of energy efficiency in social care real estate. With transparent pricing and tangible cost benefits, green lending can help care homes make the investments needed for both environmental and operational improvements.
Fit for the future With proper access to targeted investment, specialist lending, and community-focused finance, care home providers can create long-term social value in more ways than one. Their impact reaches far beyond the residents, giving invaluable reassurance and peace of mind to families and loved ones, creating employment opportunities, and providing staff the chance to build meaningful careers in supporting some of
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www.thecarehomeenvironment.com November 2026 Paul Kelly
Paul Kelly is healthcare lead at Unity Trust Bank. With over 25 years’ banking experience, Paul leads the ethical bank’s national strategy for healthcare customers, providing specialist lending support to organisations delivering frontline services across the UK.
the most vulnerable residents within their community. As people statistically live longer than
ever before – with estimates that up to a fifth of the population will rely on care homes in the future – this impact will become even more far-reaching. While the demand for social care services is evident, delivery remains the challenge. The question of how to increase and improve care home capacity is not a new one, but the risk of emerging care traps demonstrates why we cannot wait until shortages worsen. Someone may spend several decades living happily in the community they chose for retirement, only to find that the specialist care they need in their later years is unavailable. Care capacity takes time to create, so
it’s vital that policymakers, providers, investors, and communities build a shared understanding of where future demand will emerge – and what’s required to sustain these services that a significant proportion of people will inevitably depend on. Only then, can we begin to implement targeted and tangible solutions that will ensure the adequate delivery of the care infrastructure that this ageing population needs.n
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