Care Market Insight 2026: Scotland

Image: Edinburgh by Jure Tufekcic for Unsplash

2025 was a record-breaking year for our Scottish care team, which completed over £250 million worth of sales. Some highlights were the sale of Pacific Care Group, a high-performing group of five care homes totalling 219 beds and a group average weekly fee in excess of £1,500. We also advised on the sale of Thistle Healthcare to a Scottish operator, which offered 478 beds across a mix of seven purpose-built homes.

The Central Belt continues to be a very desirable location for buyers, particularly for homes with proximity to Glasgow and Edinburgh. Interest is driven by a marked increase in first-time purchasers, predominantly from south of the border, seeking smaller or mid-market homes (typically 20 to 40 beds) with established operational management in place. Additionally, we have seen a clear rise in operators acquiring second or third care homes in more remote locations and smaller towns, where pricing remains comparatively attractive.

Over the last year, we have seen deal activity across the spectrum of the market, including the sale of turnkey assets, the sale and leaseback of some of the highest quality in Scotland, and both freehold and leasehold. As ever, more modern or fully compliant homes, with 40+ beds and a high mix of private clients, attract the most interest and command the highest premiums.

For those looking to obtain funding to purchase a care business in Scotland, lenders remain supportive of new entrants and SME operators who want to expand, which is positive as it increases the pool of buyers and creates a buoyant, competitive marketplace, with buyers coming from as far as London to view homes in the North of Scotland. 

Across the UK, the care home investment market continues to attract significant interest, particularly from US REITS, with Welltower acquiring Barchester, HC-One, Aria Care, Danforth, amongst others, in record-breaking multibillion-pound deals. Some of the groups already acquired - HC-One, for example - own assets in Scotland, and we are already seeing appetite from US REITs to target additional Scotland-based operators in 2026 as they look to further expand their market presence.

OUTLOOK FOR THE SCOTTISH MARKET IN 2026

In the Scottish market this year, we expect to see strong buyer interest in group acquisitions. Meanwhile, for single-asset operators, there will be an element of distress in the market due to pressures such as the increase in employers' National Insurance contributions, staffing pressures, and the chronic underfunding of the social care sector, which translates to local authorities being unable to pay fees that are in line with the true cost of care.

For further analysis on the Scottish care home market, read our ‘Scottish Healthcare Market Review 2026’ report, which launches on 17 March 2026.