Christie & Co 2026 Care Market Review
Specialist business property adviser, Christie & Co, has launched its ‘Care Market Review 2026’ report, revealing a sector that is moving forward with growing confidence, supported by strong investor demand and improving operational performance. Activity remains robust across all asset types, with elderly care businesses continuing to attract significant interest from operators, institutional investors, and international REITs.
Drawing on Christie & Co’s consultancy data on transactional and valuation activity, and insights from operators across England, Scotland and Wales, the report highlights key trends shaping the sector. It explores areas including investment activity, funding, land and development, local authority fee rates, and findings from an annual sentiment survey which highlight the key opportunities and challenges faced by operators. The report also features an exclusive interview with Vikas Gupta, Chief Investment Officer at Omega Healthcare Investors, Inc.
Strong investor demand continues to support the market
Investor appetite for UK healthcare real estate remains impressive, with the sector recording more than £12bn in transactions in 2025, a record year for the market. Overseas capital continues to play an important role, especially from the US, which has accounted for more than two-thirds of foreign investment into the sector over the past five years.
As investment reaches record levels, management contract structures are becoming increasingly common. This change is creating new opportunities for operators to unlock capital, accelerate growth, and attract a growing number of domestic and international investors looking for exposure to the UK’s care market.
An analysis of the deals brokered by Christie & Co further demonstrates the strength of buyer demand across the market, with an average of over five offers received per instruction, and deals achieving an average of 97% of the asking price in the first half of 2026, ahead of 2025 levels. Small and medium-sized operators (those with between three and 19 homes) were the most active buyer group, accounting for 38% of completed transactions, using a combination of cash resources, REIT, and senior debt funding. Another notable trend is the rise in first-time buyers, many of whom have significant sector experience and are now taking the next step into ownership.
Compared with previous years, Christie & Co’s H1 2026 completion data highlights fewer deals involving larger homes of 40 beds or more, with more sales of smaller and mid-sized assets. This shift is driven by several factors, including a reduction in the level of non-core corporate divestments as operators continue to implement integration and asset management strategies following the major corporate transactions of 2025. However, when larger assets have been brought to market, buyer demand has remained extremely high, with a wide range of operators and investors competing for a limited supply of opportunities.
Development critical to meeting future care demand
The report also highlights continued confidence in the land and development market, with demand for well-located opportunities remaining solid, particularly for sites with planning consent. Despite ongoing planning and construction challenges, Christie & Co expects to transact around 1,200 consented and new-to-market care home beds by the end of 2026.
As operators look to future-proof their businesses, ESG is also an increasingly important consideration. The report found that 43% of operators now have an ESG strategy in place, up from 33% in 2025, while two-thirds plan to develop or enhance their approach over the next 12 months. From improving energy efficiency and investing in renewable technologies to strengthening staff wellbeing and resident outcomes, sustainability is becoming an increasingly important driver of both investment and long-term business planning.
Sector confidence remains strong
Key findings from Christie & Co’s annual sentiment survey show growing stability across the care sector. Occupancy levels remain healthy, with 69% of providers reporting occupancy rates of 90% or above, highlighting continued demand for care home beds. Confidence across the sector also remains high, with more than half of operators (52%) surveyed looking to acquire another care home in the next 12 months, reflecting improving trading conditions, sustained demand and a resilient outlook for the sector.
Fee growth eases as cost pressures persist
Christie & Co’s analysis of local authority fee rates found that average fee uplifts for 2026/27 range from 4.3 % to 5.1 % across Great Britain. While these uplifts provide some support to providers, they are generally lower than those seen in recent years, placing renewed focus on the gap between fee growth and rising operating costs.
This trend is reflected in Christie & Co’s annual sentiment survey, which found that the proportion of operators receiving local authority fee increases of more than 5 % fell from 31 % in 2025 to 22 % in 2026. As a result, many providers continue to rely on private fee growth and operational efficiencies to help maintain financial performance.
Richard Lunn, managing director – Care at Christie & Co, comments, “The care sector has continued to show positive momentum over the past year. We’re seeing strong interest from buyers, investors, and lenders, alongside improving operational performance for many providers. There is a renewed sense of confidence across the market, with operators increasingly focused on growth, investment, and planning for a more sustainable and efficient future. However, there are still important issues to navigate, such as workforce retention and local authority funding, but the overall market picture remains resilient and ambitious.”
To read the full ‘Care Market Review 2026’ report, visit: https://www.christie.com/sectors/care/market-review/