Care home ratings across England
How England's registered care homes are rated by the Care Quality Commission, and why ratings matter to lenders.
Of rated care homes in England, about 83% are rated Good or Outstanding. A home's CQC rating is one of the clearest signals a lender or buyer reads on operational quality and covenant.
At a glance
- Outstanding609
- Good10,672
- Requires improvement2,234
- Inadequate122
- As at03 June 2026
How are England's care homes rated?
CQC rates registered care homes on a four-point scale. Across rated homes in England the distribution is as follows, from the latest care directory.
| CQC rating | Homes |
|---|---|
| Outstanding | 609 |
| Good | 10,672 |
| Requires improvement | 2,234 |
| Inadequate | 122 |
Around 83% of rated homes hold a Good or Outstanding rating. A small minority are rated Inadequate, and these are the homes most mainstream lenders will not fund against until the rating is resolved, though specialist turnaround funders exist.
Why does a CQC rating matter for finance?
Lenders read the CQC rating as a proxy for operational quality, occupancy resilience and management capability. A Good or Outstanding rating supports mainstream appetite and keener terms; Requires improvement narrows the field; Inadequate usually pauses funding until it improves. For a buyer, the rating also shapes the price and the turnaround plan.
A rating is a point-in-time judgement. Recent improvement, a new manager or a re-inspection in progress all matter, which is why we read the rating alongside the home's current trading.
Source: Care Quality Commission care directory, 03 June 2026. Contains public sector information from the Care Quality Commission, licensed under the Open Government Licence v3.0.
Care home ratings across England: common questions
What percentage of care homes are rated Good or Outstanding?
About 83% of rated care homes in England are Good or Outstanding (03 June 2026).
Can you finance a care home rated Requires improvement or Inadequate?
Yes, but the field of lenders narrows and terms tighten. Requires improvement is fundable with the right operator and a credible plan; Inadequate usually needs a specialist turnaround funder. We match the case to lenders that back the situation.
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Working on a care home deal?
Send us the home, the operator or the portfolio and we will give a view on fundability and terms.