The Cornwall Care Market

Image credit: Greg Wilson for Unsplash

Elderly care homes play a crucial role in Cornwall’s local communities - meeting residents’ needs while supporting local economies through jobs and investment. In this article, I outline the current and forecasted elderly care provision in the county, along with insight into pricing trends and operational benchmarks. 

CURRENT & FUTURE PROVISION 

As of 2026, Cornwall is home to 136,668 people aged over 65. This number is expected to rise by 12% to 153,001 by 2031, and by a further 9% to 167,249 by 2036. 

Despite this growing demographic, the county currently has 129 elderly care homes, providing 4,118 registered beds - an average home size of 32 beds. Of these homes: 

• 60% have en suite rooms 
• 9% have wetroom facilities 
• 18% include dedicated dementia beds 
   

Most homes are concentrated in higher-density urban areas, leaving significant gaps in provision across rural communities, where transport and workforce challenges limit development. 

Between 2021 and 2026, nine homes closed, with an average size of 33 beds, totalling 315 beds, 39% of which had en suite provision. In the same period, only six new homes opened, offering a combined 209 future‑fit beds, all with 100% en suite rooms and an average of 39 bedrooms. This rate of replacement is insufficient to offset closures, contributing to a shrinking supply of modern, fit‑for‑purpose accommodation. 

Looking ahead, there are 17 approved, active planning applications (including extensions) representing 587 beds, averaging 67 beds per scheme, plus 12 additional granted applications. 

With demand for elderly bedspaces set to rise by 24% over the next decade, continued investment in Cornwall’s healthcare infrastructure is critical. 

OPERATIONAL BENCHMARKS 
 
Average occupancy across Cornwall has now risen to 89.6%, bringing levels back in line with pre‑pandemic performance and clearly demonstrating the sustained national need for care bedspaces. Demand is particularly acute for dedicated dementia provision, where shortages continue to place pressure on both local authorities and operators. We anticipate relative stability in occupancy throughout 2026, with only minor fluctuations expected. 

Care fees across the South West have also experienced notable growth. According to online care home directory, lottie, the average residential fee now stands at £1,349 per week, while nursing care averages £1,546 per week - increases of 18% and 19% respectively. These uplifts are largely a response to wider economic pressures, including high inflation, National Living Wage and National Insurance increases, and significant rises in energy costs. As operational expenses continue to climb, further fee adjustments are likely. 

Staff costs remain one of the largest outgoings for providers. On average, staffing now accounts for 60% of revenue, though this varies between service types, reaching 63% in nursing settings and falling to 58% in residential homes. The average weekly cost per resident is £863 in nursing, and £729 in residential, and agency usage has reduced to 6.1% of overall staff costs, signalling some improvement in workforce stability. 

Other core operational expenditures remain relatively modest, with providers spending an average of 3.6% of turnover on food, 2.4% on utilities, and 2.8% on repairs and maintenance. Together, these indicators reflect a sector that is stabilising after several turbulent years, though ongoing cost pressures mean careful financial management remains essential. 

CARE HOME VALUES 

Improved occupancy and more stable staffing costs - supported by overseas sponsorship routes reducing agency reliance - have strengthened many operators’ profitability. Despite some press indicating otherwise, the majority of providers are showing improved profits as a result. 

At the same time, limited stock coming to market is driving competitive bidding and lifting prices. Lender appetite has also returned, and the sector continues to attract new investors seeking defensible, resilient assets.  

To discuss the care market in Cornwall in more detail, get in touch: simon.harvey@christie.com or 07764 241 310