Care Market Insight 2024: Scotland

Image credit: Adam Wilson for Unsplash

In the first half of 2024, we saw a buoyant care market in Scotland which was inundated with new market entrants that significantly bolstered interest in smaller, boutique homes and mid-market stock. Large, corporate buyers continue to seek new build state-of-the-art homes but rising interest and build costs have impacted land prices and appetite to do deals on even some prime locations in the country.

The Central Belt remains the most sought-after location, with a significant increase in first-time buyers, especially from south of the border, looking for smaller or mid-market homes with operational management in place. We have also seen a rise in operators buying their second or third homes in the remote, smaller towns where pricing is more attractive.

There is an appetite for all types of homes - from vacant possessions to turnkeys and everything in between. Premium homes that are compliant that have high levels of private clients, and groups that enter the market, are getting competing interest. The appetite for freehold is more dominant, however, leasehold still holds interest in the market.

Outlook

So far this year, we have seen a decrease in distressed homes coming to market, and, anecdotally, are hearing of lower agency use, better fees, less turbulence in staff turnover and, in general, more content operators with a brighter outlook on the sector. We expect this sentiment to continue in 2024.

Back in March, overseas workers had an alteration in their visa that meant they were prohibited from bringing over their dependants. This is a significant change that will hinder the attraction to work in Scotland. We are yet to see the true impact of this policy change, however, within this year we will be able to gauge the significance of this change on agency usage.

To find out more about the care market in Scotland, or for a confidential chat about your business, contact Martin Daw: martin.daw@christie.com