2025 was a busy year for our dental team, which advised on, agreed, or sold 1,241 practices with a combined value of £1.68 billion. We also conducted 432 formal RICS valuations with a combined value of £359,908,503. We brought 205 practices to the market, arranged 562 viewings, received 330 offers, and saw a 6.7% increase in the number of deals agreed compared with 2024 figures.

The UK dental market showed clear signs of recovery and renewed confidence after a market correction in 2023 and a cautious 2024. The Bank of England’s base rate reduction to 4% improved affordability, with specialist lenders offering higher loan-to-value ratios and more flexible terms, particularly benefitting first-time buyers and operators looking to expand. This is driving renewed appetite for acquisitions, especially in the private and mixed-practice segments.

First-time buyers who previously focused on mid-market practices (circa £750,000 to £1 million) actively pursued higher-value opportunities, encouraged by favourable lending conditions. As terms have become more accessible, we are seeing younger clinicians enter practice ownership earlier than they had anticipated, adding further competition within the independent market.

Inflationary pressures remain a challenge, particularly around staffing and materials. Rising employers’ National Insurance contributions and increases to the National Minimum Wage have added cost pressures for all operators. These pressures are felt most acutely within NHS practices, which often operate under tighter margins due to fixed contract values. Despite this, NHS practices continue to play a vital role in the UK’s healthcare infrastructure, and many have demonstrated remarkable resilience amid workforce and financial constraints. In response to economic pressures, more practices are developing robust mixed-income models to create long-term sustainability while still maintaining crucial NHS access for patients.

Workforce shortages exacerbated by changes to immigration rules and the NHS graduate tie-in have intensified operational strain, particularly for NHS providers, and have in some cases limited their ability to fulfil contractual requirements. Practices with strong private income streams and stable, well-supported teams continue to command premium values, reflecting buyer preference for resilience and consistent profitability.

From a regulatory standpoint, planning delays and compliance requirements continue to add complexity to transactions. Meanwhile, ESG considerations such as sustainability in refurbishments are becoming increasingly relevant for larger operators. Technology adoption, including AI-supported diagnostics and digital workflows, is also gaining ground as a differentiator, though its impact varies across buyer groups. Practices embracing innovation are viewed as more future-ready, which can positively influence valuation and lender sentiment.

Government policy remains a defining backdrop in UK dentistry. While the NHS 10-Year Plan signals meaningful intent to improve access, prevention, and long-term system sustainability, uncertainty surrounding contract reform and future funding structures continues to temper some investor confidence. Nonetheless, the NHS remains indispensable to the nation’s oral health provision, and many buyers recognise that well-run NHS or mixed practices, particularly those supported by strong teams and strong patient demand, offer stability and strategic value, even in a changing policy environment. Private-led models continue to attract strong interest, but there is still a clear and enduring role for NHS dentistry within the broader market landscape.