20 Feb 23 by James Pullin
Care Home Market UK
The care home market UK is expected to grow. The number of people aged 85 and over is forecast to increase from 1.7 million in mid-2020 to 3.1 million in mid-2045. To keep pace with this age-related growth, the number of retirement homes is estimated to need to grow by 8.8% through to 2025, according to the International Longevity Centre UK. Growing demand is expected to attract new operators to the care home market, with enterprise numbers expected to expand at an annual rate of 0.9% over the five years to 2027-28. In response to this rising demand for industry services, the government announced a 1.25% increase in National Insurance Contributions, which began in April 2022. The aim of this levy is to raise £5.4 billion revenue over the three years through 2024-25, with £3.6 billion to be used towards reforming how people pay for care. From April 2023 onwards, the National Insurance Contributions rates will decrease back to 2021 to 2022 tax year levels and will be replaced by a new 1.25% Health and Social Care Levy where the revenue will be ringfenced to support UK health and social care bodies.
Vickery Holman act for care home operators across the South West, providing a range of property and funding related services. Our Healthcare team also supports the wider sector including GPs, dentists and vets with valuation, rent review, Business Rates and building advice. Please don’t hesitate to get in touch with Vickery Holman if you think we could be of assistance.