Care Market Analysis Update – What is Trending? by Jonathon Read Chandler & Co.

Chandler & Co have had a good start to 2019, with a total of £202m loan proposals agreed and requested, 96 active deals & 15 different lenders!

The care market – despite the recent political climate – is continuing to thrive and grow, mainly due to the growing elderly care population and lack of NHS funding towards this sector building the private market.

Staffing and recruitment were a worry for owners once the national living wage increases were announced, however local authorities have increased their fees in line with this, stabilising the existing, good quality care homes providing vital care. This ripples through the market and then allows private care homes to increase fees to accommodate.

In a particularly worrying time for new entrants to the sector and existing care home operators, the care sector is pulling through, and with recent CQC inspections (as of April 2019) being 68% Good or Outstanding; operators are adapting to the new regulations and general quality of care is dramatically improving.

We also hear a lot about the importance of building brand new care facilities, but local authority funding and fees remaining stagnant. There remains a large proportion of boutique care homes and good quality care that is the backbone of the sector, providing homes to residents that cannot afford to pay over £1,000 per week. We are seeing the majority of the transactions taking place in this area as care is improving, meaning they are providing strong competition for the corporate healthcare operators which is again pushing the quality of care higher.

As quality of compliance is improving, lenders have identified healthcare as a strong sector for growth. With such a selection of ‘new’ challenger banks and specialist lenders offering unique & exclusive packages, and some high street banks pulling back slightly from the market, it is important to get specialist advice on your commercial mortgages. Especially if you have an existing lender who isn’t showing an appetite to help you grow. This does not mean that there aren’t funding options!

Contact Chandler & Co for the latest interest rates on 01622 817484 or email