Investment activity in the UK care home sector hit a record high last year, according to new data from Cushman & Wakefield.
Deals totalling £10.25bn completed in 2025 – up 226% on the £3.1bn recorded in 2024. These figures were driven by £7.98bn of transaction activity in Q4, which was largely due to Welltower’s acquisitions of Barchester Healthcare and HC-One, which together accounted for approximately £6.4bn.
The continuing influx of US-based investor capital drove the surge in transactions throughout 2025 with US investors accounting for 88.6% of overall volumes, up on the 54.9% recorded in 2024 and 10% in 2023.
Peter Farnes, partner, healthcare markets at Cushman & Wakefield, said: “This year follows a transformational 2025 for the UK care home sector. Record transaction volumes last year underline the UK market’s enduring appeal for international investors, with the scale and pace of US capital deployment, particularly in the final quarter, fundamentally reshaping the investment landscape and setting a new benchmark for deal activity. As a result, the market has increasingly shifted towards management contracts and platform-level acquisitions.
“While headline figures were driven by a small number of landmark transactions, underlying deal flow remained broad-based. We continue to see strong appetite for mid-market portfolios across a range of asset quality, which is a positive indicator of long-term market health.
“Looking ahead, while overall transaction volumes are unlikely to replicate another year of record-breaking activity, mid-market deals, platform consolidation and operationally strong assets are expected to underpin sustained investment activity. Cost pressures from increases in the National Living Wage and employer National Insurance contributions will continue to be monitored, particularly for older, lower-fee homes; however, operators appear well positioned to manage these challenges.
“Importantly, the UK care home sector benefits from powerful structural demand drivers. An ageing population is creating sustained, long-term demand for elderly care and suitable accommodation, while increasing policy focus on expanding and improving provision for older people further supports the sector’s resilience. The landmark transactions completed in 2025 have significantly raised the profile of the UK care sector, and strong pipeline visibility and rising international engagement suggest transaction momentum will remain healthy through 2026.”
