Residential Nursing Care in the UK - Industry Research Report

Caring for revenue: In 2022-23, industry revenue is forecast to rise, despite families struggling with the rising cost of living

As the UK population ages, the Residential Nursing Care industry expands. Homes have upped their average weekly fees, contributing to revenue growth. However, growth has been limited by state involvement, which has kept care fees artificially low for a large proportion of nursing home residents. Residential nursing care revenue is anticipated to grow at a compound annual rate of 0.9% to £8.9 billion over the five years through 2022-23, including revenue growth of 2.4% in 2022-23. Weak government funding and inflationary wage cost pressures have constrained profitability, which is forecast to reach 2% in 2022-23. Since the introduction of the National Living Wage in 2016, which increased to £9.50 in April 2022, labour supply shortages caused by high turnover rates have been of particular concern.

Operators in this industry provide combined residential and intensive nursing care. This combination is what differentiates the industry from other care home operations.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.