For operators looking to grow their portfolio, acquiring an operational care home, or one that has recently closed, has numerous benefits. With rising construction costs and potential planning delays, it’s no surprise that clients are increasingly seeking acquisition opportunities to fuel their growth plans.
But what does the closed care home market look like and where are the best opportunities?
Here, we explore the home profile of elderly care homes that have closed over the past couple of years (between 1 June 2022 and 1 June 2023) to investigate the opportunities within this market.
During this period, 478 homes, providing 15,234 beds, closed across Great Britain. With an average home age of 31 years and an average size of 32 beds, our data also highlights a range of opportunity indicators within these homes.
- 53% had en-suite bedrooms (8,135 beds)
- 11% had wetroom bedrooms (1,682 beds)
- 54% were in markets with above average house prices
- 44% had a Good or Outstanding CQC rating at the point of closure (England)
- 20% are in markets with no current planning for additional care home beds
- 35% are in markets with a current shortfall of en-suite beds
- 37% are in markets with large or higher demand
- 41%/38% of closed care homes are in markets with an above average local authority baseline fee (personal care/nursing)
Let’s explore the closed home profile by region on the interactive map below
Click on the map to reveal further information.
So, what are the key advantages of redeveloping a closed elderly care home?
Cost savings: Redeveloping an existing home can generally be more cost-effective than constructing an entirely new one. The cost of purchasing land, obtaining necessary planning permission, and other initial expenses associated with a new-build can be significantly higher compared to refurbishing an existing structure.
Environmental sustainability: Repurposing and reusing an existing building is generally more environmentally friendly than constructing a new one. By avoiding demolition, reducing waste and utilising existing infrastructure, redevelopment can minimise the carbon footprint associated with construction, while offering opportunities to enhance the current offering with features such as EV-charging facilities, solar PV and clean energy procurement.
Preservation of historical or cultural value: Some closed homes may hold historical or cultural significance, making their preservation and redevelopment a valuable endeavour. Repurposing these homes can contribute to the preservation of local heritage and retain the familiar sense of place for the community.
Faster project timelines: Developing a care home from scratch often involves a longer project timeline due to the extensive planning, design, and construction phases. In contrast, choosing to redevelop an existing home can significantly reduce this timescale, allowing the redeveloped home to be operational and providing the much-needed accommodation and care sooner.
Community acceptance: Closed homes are often part of existing communities, which admittedly can have both positive and negative implications for redevelopment. However, the redevelopment of a closed home is more likely to gain community acceptance and promote positive community relationships quicker than a new development, as it retains the purpose of the building, especially if addressing any concerns that led to its closure.
It’s important to note that the suitability of redeveloping a closed elderly care home may depend on various factors, such as the condition of the building, its location and market demographics, and the specific needs and goals of the project. A thorough feasibility study and proper due diligence should be conducted to fully explore the market potential.
Let’s explore the profile of closed homes by opportunity indicators
Click on the graphic to reveal further information.
It’s clear from our data that the closed care home market hosts a wealth of opportunities for operators looking to expand their portfolios. Large numbers of the homes closed over the past 2 years are displaying the right supply, demand, competition, fee, and wealth indicators required to support growth plans, supporting the growing trend we are seeing in operators saving time and money by acquiring closed homes.
However, the skill lays in aligning these indicators to find the right opportunity, in the right market, to suit an individual operators’ growth plans. And that’s where we come in.
Interested in exploring market opportunities to fuel your growth plans?
Whether you have your next acquisition project in sight or are still seeking the right opportunity to complement your portfolio, we are here to support you with the next step of your journey.
If you are already a Carterwood Analytics | Elderly Care Homes subscriber, then the good news is that you already have a treasure trove of data at your fingertips.
However, if you are not a subscriber, then let us introduce you to a powerful market analysis platform that provides instant access to detailed supply, demand, wealth, fee and trading data for elderly care markets across Great Britain.
Complete the quick form below to request your free overview of closed homes in the market you are interested in, and to request a demo to explore all the data and tools Carterwood Analytics | Elderly Care Homes has to offer in helping you assess market opportunities.