Occupancy levels across UK private care homes have returned to, and in some cases exceeded, the pre-pandemic long-term average, according to Knight Frank’s 2024 Healthcare Trading Performance Report.
Average UK occupancy levels currently stand at 88% – a 2% increase on 2023 and the highest average occupancy rate since 2019.
Average weekly care homes fees have grown 11% year-on-year to £1,182 per week. As a result, earnings before interest, taxes, depreciation, amortisation, rent, and management fees (EBITDARM) across the private care home sector has increased 26% in 2024.
London (14%) saw the highest yearly increase in fees, with the North East (60%) representing the highest proportion of self-funded care residents across the country. Northern Ireland recorded the highest year-on-year growth out of all UK regions, with occupancy increasing 6.4%, followed by Wales (5%).
Knight Frank’s research found that 63% of residents in private pay or self-funded homes fall within the over-85 age bracket, compared with 46% in local authority homes.
Julian Evans, partner and global head of healthcare at Knight Frank, said: “The healthcare sector’s performance has continued to reflect its robust underlying growth fundamentals, with an ageing population creating supply side pressures for good quality single-bed facilities across the UK. Growing occupancy and property income levels have coincided with inflationary pressures moderating, which means that higher volumes of capital will target opportunities within a sector facing a shortage of quality stock.
“Despite headwinds in recent years, which have led to higher operating costs, quality care homes in areas with the right demographic profile continue to operate with remarkable resilience given they meet an essential societal requirement.”
