UK Elderly Care MarketBeat Reports

KEY TAKEAWAYS FOR Q2 2026

• H1 2026 Volumes in Line with Historical Norms
• H1 2026 transactional volume of approximately £790m is broadly consistent with H1 2023 and 2024 levels. With Q2 delivering a meaningful step up from Q1, the market is gathering pace and moving in line with its established historical rhythm.
• The Market Has Depth Beyond Headline Figures
• Activity at the operator and smaller portfolio level has continued steadily, with a strong volume of deals under offer and land and forward funding transactions continuing to progress. The pipeline provides a credible foundation for stronger H2 volumes.
• Investor Interest Remains Strong, Deployment Remains Selective
• Specialist and generalist investors alike continue to engage actively with the sector. While elevated Gilt rates are maintaining a high deployment hurdle for generalist capital, WholeCo transactions continue to dominate - underpinned by operational metrics rather than yield benchmarking.
• Occupancy Holds Firm Despite Seasonal Softness
• Market occupancy stood at 88.3% in Q1 2026, maintaining the multi-year trend of stability at or above 88%. A modest seasonal dip was recorded, consistent with historical patterns, but demand has shown no signs of structural weakening, with fee increases having minimal impact on occupancy levels.
• Operational Performance Remains Resilient
• Average Weekly Fees held steady at £1,440 across the market in Q1, with further uplifts expected as annual reviews feed through in Q2. Profit margins held at 30.1%, demonstrating that the sector has absorbed the cost pressures of 2025 without material deterioration.