The ‘South West Healthcare Market Insight 2025‘ report, published by specialist business property adviser Christie & Co, has highlighted the high demand for care home beds in rural areas.
The shortages in Cornwall, Devon, Somerset and West Dorset have been attributed to a significant proportion of the population being aged over 65 – 35 per cent above the national average – and over 85 – 38 per cent above the national average.
In order to support the high ratio of people across the region requiring care home support, there are currently 722 homes providing 35 bed spaces per home on average.
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Christie & Co has forecasted that this will increase to a shortfall of 23,056 by 2035, with the largest deficit being in Devon at over 10,616 beds.
Over the past four years, the region has only seen a net gain of 101 bed spaces, after 1,914 new beds were constructed but 1,813 were lost due to care home closures.
Currently, there are only 456 beds under construction in the region, which is not enough to meet the increasing demand.
Karun Ahluwalia, director of healthcare consultancy at Christie & Co, said: “Smaller, converted homes are often well-placed to cater to their local markets, particularly in areas with lower population density.
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“However, rising demand and a shortage of modern wetroom facilities present a strong opportunity for regional and corporate care operators to gain an early mover advantage by investing in new developments in the region.
“Alternatively, operators can look to retrofit or reconfigure older stock that may not align with the latest market standards, thereby enhancing their competitiveness and future-proofing the homes.
“With the sector evolving to meet growing demand, strategic investment in high-quality care facilities will not only address existing gaps but also position operators for long-term success in an increasingly competitive market.”
The report also revealed that the average house price in the region is 10 per cent above the UK average, and 41 per cent of the population own their homes outright.
This elevated level of affluence is said to provide support for a sustainable private fee-paying market.
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However, only 24 per cent of the existing care homes are purpose-built, significantly below the national average of 44 per cent.
Cornwall has only 15 per cent purpose-built stock, the lowest in the region, while Devon has the smallest proportion of care homes with over 40 bed spaces, at 11 per cent.
The findings underline the urgent need for strategic planning and investment to ensure that future demand for elderly care can be effectively met.
For more information, the full ‘South West Healthcare Market Insight 2025’ report can be read at christie.com.