2020 Insights on Care Homes for Older People in the UK - Private Payers Account for 51% of the Market - ResearchAndMarkets.com

DUBLIN--()--The "Care Homes For Older People UK Market Report" has been added to ResearchAndMarkets.com's offering.

The 30th edition of the much respected Care Homes for Older People UK market report is vital reading for anyone involved in this large and dynamic sector. In a changing market, this provides commissioners, providers, investors and advisors with indispensable information on which to base business decisions.

A key factor in this 16.5 billion market (March 2019) is its clear divergence onto two tracks. Private payers account for 51% of the market by value and 45% by volume. This side of the market has also underpinned the overall market's inflation-beating growth, private pay growing by 6.1% (CAGR in cash terms) over the years between 2009 and 2019, compared to 3% for the market as a whole.

Healthy growth is expected to continue for this sector as the owner occupier peak' moves into the 85+ age group - the age group where people are most likely to enter a care home. Contrast this with the state pay market. Fees paid by local authorities, under the pressure of austerity, now barely cover the providers' average costs. This is only sustainable so long as there is a level of crosssubsidy from private payers, who on average pay over 40% more in fees than local authorities. Local authorities have also sought to reduce costs by containing the level of demand, meaning there is spare capacity in many areas in spite of an ageing population.

There are, nevertheless, questions over how long this buyer's market can continue before it becomes a seller's market. New information from CQC suggests that there is greater capacity than previously thought - but this is based on registered beds rather than available beds. The publisher starts to investigate in this report what lies behind current capacity and demand. Should supply be lower than expected, particularly in areas where there are larger numbers of older people, the ability of local authorities to bear down on fees and profit margins will be curtailed.

Anecdotal insights already suggest growing pressure on the market. In the past year, the publisher has become aware that a number of local authorities are considering re-entering the residential care market to ensure they can access care at a price they can afford - while also benefitting from being able to gain additional income from private payers.

Demand pressure for nursing care is also building. Five-thousand registered nursing home beds have been lost since 2015. Less well known is the impact of nursing homes which have stopped taking nursing care placements without changing their registration because of nurse shortages. Potentially, this will have a huge impact on the high acuity end of the market.

What the report includes

  • Care Homes for Older People - residential and nursing care
  • Market size
  • Payors
  • Historic and future market growth
  • Demand and supply
  • Staffing
  • Operational metrics and models
  • Investment models
  • Performance measures
  • Government policy and regulation
  • Major providers
  • Market structure
  • Investors
  • Market Potential
  • Appendices
  • Regulators
  • Trade Associations
  • CMA Conclusions
  • Financial Appendix

Key Topics Covered:


1.1 Definition and scope

1.2 Data sources

1.3 Market size

1.4 Segmentation

1.5 Funding by payor type

1.6 Growth

1.7 Demand drivers

1.8 Demand and supply

1.9 Staffing

1.10 Key operational metrics

1.11 Operating and investment models

1.12 Performance measures


2.1 Historical background: emergence of the independent sector as the dominant supplier of social care services from the late 1970s

2.2 Political consensus on social care - other than funding issues

2.3 Sustainable long-term care funding? - prospects for the next five years from the perspective of operators and investors

2.4 The as yet unresolved issue of how to share long-term care funding between the state and the individual

2.5 Other legislation and policy issues

2.6 Regulation of social services

2.7 Profile of regulators


3.1 Customer profiles

3.2 Payor trends

3.3 Public sources of finance - local authorities

3.4 Public sources of finance - the NHS

3.5 Private payers

3.6 Long-term care insurance and other LTC financial products


4.1 Market concentration

4.2 Group penetration

4.3 Segmentation by provider sector, registration type and size of home

4.4 Exits (including business failures & recapitalisations) and entries

4.5 Economies of scale and scope

4.6 Brand value

4.7 Sources of capital

4.8 Scale, age and quality of stock

4.9 Pace of modernisation


5.1 Returns sought by investors

5.2 Sources of capital for investment

5.2.1 Debt Bank debt Bonds Private equity Islamic funding

5.2.2 Leased assets US REITs UK financial institutions

5.3 Transactions and exit multiples


6.1 Alternative care home models

6.2 Digital technologies

6.3 International dimension of care home operation

For more information about this report visit https://www.researchandmarkets.com/r/m3qb1y


Laura Wood, Senior Press Manager
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900


Laura Wood, Senior Press Manager
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900