The care home sector has been hit hard by Covid-19. With care home residents generally amongst the most vulnerable groups in the population, UK care homes have seen deaths rise by 220% since the start of the crisis.
However, it appears that the situation may be improving. Two of the UK’s largest care home operators have reported that death rates are falling, and with the government announcing a new coronavirus testing portal for care homes, further outbreaks can be prevented and controlled.
The UK population is ageing and the Competition & Markets Authority predicting “a substantial increase in demand for care home services” in the years to come. According to The Lancet, the number of people aged 65+ needing round the clock care will have risen by a third between 2015 and 2035 – a figure which will double for those aged 85+. As a result, Grant Thornton projects that “the UK needs at least 75,000 additional elderly care beds by 2030 and that, based on recent trends, demand will outstrip supply by 2022”.
In 2019, the European care home sector attracted record levels of investment, and it’s not just the increased demand that’s set to change. Covid-19 has shown that the use of technology – both for remote communication and for health monitoring – needs to continue, with 48% of care sector delegates at a recent ‘virtual conference’ saying that greater use of technology will have the biggest impact on home care providers post-pandemic.
With construction firms also building new and innovative care home solutions across the UK – like Passivhaus in Exeter – there is plenty in the care home sector for investors to get excited about.
Stable Rise Limited is not authorised or registered by the Financial Conduct Authority. The marketing materials are not intended to provide financial advice nor promote any individual financial products.