17% of the UK’s population is over 65 equating to over 11 million people.
The NHS Confederation states that the 85+ age range, that requires the most care, is set to double from 1.5million as at 2014 to over 3.6 million by 2029.
The average yields for care home property investors surpass 10% per annum.
THE DEMAND FOR
The Care home investment market is rapidly gaining momentum purely because in all areas of the UK, people are living longer and elderly people are making up a larger proportion of the population every year. Over 65’s make up 18% of the current UK population and this is expected to rise to 25% by 2044. High demand combined with the low levels of supply of care home rooms means that care homes are fast becoming a lucrative investment option for investors. If you would like to discuss the care home investment opportunities that we have shortlisted, please get in touch with our investment team today.
A HIGH DEMAND INDUSTRY WITH POSITIVE PROSPECTS
The UK, along with most western countries, has a rising elderly population that continues to rise with further advances in medical care every year.
The cost of care provision in the UK is mainly funded by the government as only 5% of UK residents retire financially independent. Anyone with less than £23,250 of assets when needing care provision is funded fully by the government, a proportion is met for those retiring with under £118,000 and nothing for those with over 118,000 who have the means to pay themselves for more luxury style care.
Lease back options are available to investors and with assured returns for up to 10 years giving a lot of confidence to buy-to-let property investors.
The demand for care in the UK is set to increase by 150% over the next 4 years (OFT) and this is why so many buy-to-let property investors are targeting the care home property investment market.
Occupancy rates have hit a record high since records began in 2006, increasing for the sixth consecutive year to 89.4%, finally surpassing the 2006 figure of 89.3%