The UK senior housing and care home investment market hit a 10-year high in the first half of 2025 with £1.5bn of deals transacting, according to new data from Savills.
Care homes led the charge, buoyed by robust private pay pricing, improved operator performance and favourable market dynamics.
The private hospital sector also performed strongly in H1 2025, fuelled by NHS outsourcing of elective procedures and rising private pay demand.
Savills said that international investors, particularly from the US, are increasingly targeting UK healthcare REITs trading at discounts to net asset value, with the recent wave of cross-border activity signalling significant confidence in the UK healthcare sector’s long-term value and resilience.
Caryn Donahue, head of senior housing and healthcare transactions at Savills, said: “Investor interest in UK healthcare real estate remains very strong, supported by a stabilising macroeconomic backdrop and growing policy support for public private delivery, particularly in primary and acute care. In the care home sector, rising wages and immigration changes may put pressure on margins, especially for providers that are reliant on local authority funding, but private providers will see less impact.”
Tom Atherton, strategy and market intelligence manager at Savills, added: “Strategies focused on private pay demand and operational upside remain well-positioned. With dry powder available and financing conditions improving, momentum in the UK healthcare sector is expected to continue as we head towards the end of the year and beyond.”
