The Age of Investment in Care Homes – Update
We launched our paper on investing in care homes on 21st October, please see the blog of that date for further information. Feedback has been strong, from clients, journalists and new contacts.
Four Seasons, the UK's largest care home operator, are in the news again today. The chairman has warned of the crisis facing the industry, and that the funding that care homes receive from the councils need to increase by 6% and 10% to stand still, and that Four Seasons is selling homes due to financial pressures.
These views are endorsed by the mood at the HealthInvestor Summit held in London Wednesday 4th November, which members of our team attended. Evidence suggests that the UK Government's minimum net wage policy has resulted in stress on the business models of the care homes outside the "premium" sector, causing the investment market to pause for breath. However, at the premium end of the market, investors and developers are pushing ahead with new investments, land acquisitions and planning applications. The market remains challenging outside the premium end of the market, but plenty of opportunity for those prepared to take a risk.
Please contact us if you would like a copy of our paper.