Care Market Insight 2025: South East of England
In this article, John Harrison, Director - Care at Christie & Co, discusses the growing interest and the challenges currently facing the care market in the South East.
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Market Overview
The care market is particularly strong in the South East, with more sales in the pipeline than ever before, and an increasing number of new market entrants registering to buy their first care homes.
Smaller to mid-size individually owned homes with between 20 and 30 beds make up the majority of the stock we have on the market at the moment, most of which are up for sale due to retirement.
Buyers in the region are particularly interested in highly rated, well-performing homes that can be easily taken over, and we’re seeing a steady appetite for homes that are either closed or have noticeable growth potential, which are ideal for redevelopment or alternative care use.
We’ve seen a lot of activity in more affluent commuter areas near the M25, which has been bolstered by the strength of brick-and-mortar values in the region due to increasing fee rates and strong occupancy levels. A lot of enquiries are also coming in from new entrants to the market, particularly those who live near the M25 and are seeking a home that is reasonably accessible to them. Kent, for example, is proving popular among applicants from the Southern part of the M25. A lot of regional operators are looking to expand and purchase corporate disposal assets which are local to their portfolios.
Challenges
CQC ratings are affecting the lending appetite for some homes. For first-time buyers in particular, it can be difficult to secure the required funding for a home if it is rated as ‘Required Improvement’ or ‘Inadequate’, however, given the needs-driven basis of the sector, some lenders ultimately will provide finance for these opportunities to the right buyers. Of all the deals that Christie Finance sourced funding for in 2024, 29% were for first-time buyers looking for an average debt of below £1 million – so while it's perhaps more challenging, there is funding out there for the right buyers.
For more information on the care market in the South East, or for a confidential chat about your business options, contact John Harrison: john.harrison@christie.com / +44 7764 241 296