Why Invest In Care Homes?

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The care and nursing home industry is a growing sector that offers good defensive qualities in tough economic conditions and is non-cyclical, providing investors with a steady cash-flow. The industry has recently been subject to substantial investment from the Private Equity and Pension Funds who have identified this as a profitable, valuable and growing sector.

Nursing and care homes are essential for the ageing population in the UK. The Madison Care Home will be managed by a professional and experienced operator.

Government reports confirm that life expectancy of individuals in the United Kingdom is increasing. Records indicate an increase in life expectancy of 4.8 years in the last 20 years and that over the next 20 years it is forecast to increase by an additional 6 years. The Office of National Statistics’ report predicts the number of people over the age of 85 years old to triple by 2081 with records indicating 1.3 million in 2008 and 7 million in 2081.
Based upon the assumption that 40% of individuals over 85 years old will require accommodation in a nursing or care home, it is estimated that over the next 20 years the additional demand for care and nursing homes will equate to 800,000 rooms. Currently in the UK there are 24,000 care homes and with the projected demand, the number of homes would need to double to meet the number of rooms required.

 

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