16
Tracked deals
Insights
Care home transactions and yields
A running record of notable UK care home deals, and where prime and operational yields sit, for operators, buyers and investors.
Written and reviewed by Matt Lenzie Founder & Principal Broker · 25 years arranging care home finance · Reviewed June 2026
£7.3bn
Disclosed value
5.25%
Prime yield (Q3 2025)
6%
Operational yield
The UK care home market has consolidated fast, with well-capitalised REITs, private equity and overseas investors buying platforms and whole companies rather than single homes. The deals below are notable transactions we track, each attributed to a named source. Where a figure was not disclosed we leave it blank rather than estimate.
Yield trend
Where care home yields sit
Prime long-lease yields against operational and regional pricing.
| Period | Prime yield | Operational | Source |
|---|---|---|---|
| Mar 2024 | 4.75% | 5.75% | Knight Frank Investment Yield Guide |
| Dec 2024 | 4.5% | 5.75% | Knight Frank Investment Yield Guide |
| Q3 2025 | 5.25% | 6% | Knight Frank Seniors Housing Review 2025/26 |
Prime reflects the keenest covenant (not-for-profit, long indexed leases). Operational and regional care homes price materially higher to reflect trading risk. Sources as listed; figures as reported.
Deals
Recent UK care home transactions
Most recent first. Prices and yields shown where publicly disclosed.
| Date | Buyer | Asset / seller | Homes | Price | Yield |
|---|---|---|---|---|---|
| Dec 2025 | Care UK (Welltower)Operator | Aria and Danforth operationsAria Care and Danforth Care Homes | 12000 beds | n/d | n/d |
| Dec 2025 | Target Healthcare REITREIT | Central Scotland sale-and-leasebackLocal operator | 4 | £45m | 6% |
| Oct 2025 | WelltowerREIT | Barchester real estate and operating portfolioBarchester Healthcare (Limecay) | 263 | £5.2bn | n/d |
| Oct 2025 | WelltowerREIT | HC-One operated portfolioHC-One | n/a | £1.2bn | n/d |
| Sep 2025 | UndisclosedInvestor | Nine-home disposalTarget Healthcare REIT | 9 | £86m | n/d |
| Sep 2025 | CareTrust REITREIT | Two higher-acuity homesUndisclosed | 2 | n/d | n/d |
| Aug 2025 | Avery HealthcareOperator | Artisan Care GroupArtisan Care Group | 774 beds | n/d | n/d |
| Jul 2025 | Undisclosed operatorOperator | Clandon Road, Surrey (74-bed turnkey development)Developer | 1 | n/d | n/d |
| May 2025 | CareTrust REITREIT | Care REIT plc whole-company takeoverCare REIT plc | 132 | £448m | n/d |
| May 2025 | New entrant operatorOperator | South Yorkshire care homeUndisclosed | 1 | n/d | n/d |
| Apr 2025 | Omega Healthcare InvestorsREIT | Four Seasons remaining portfolioFour Seasons Health Care Group | 47 | £242m | n/d |
| Feb 2025 | Hartford CareOperator | Graham Care Kent homesThe Graham Care Group | 5 | n/d | n/d |
| Jan 2025 | Hartford CareOperator | Select Healthcare homesSelect Healthcare Group | 16 | n/d | n/d |
| Oct 2024 | WelltowerREIT | Care UKBridgepoint | 163 | n/d | n/d |
| Aug 2024 | Foundation Partners and Deer Capital (Hartford Care)Private equity | Hartford Care platformHartford Care | 21 | £100m | n/d |
| May 2024 | Omega Healthcare InvestorsREIT | Akari Care portfolioThe Carlyle Group (Akari Care) | 32 | n/d | 9.8% |
Sources: Knight Frank, Christie & Co, Caring Times, Care Home Professional, The Carer and company announcements, as linked. "n/d" means not disclosed. Compiled for information; not investment advice.
FAQ
Care home transactions and yields: common questions
What yields do UK care homes trade at?
Prime not-for-profit, long-lease healthcare assets trade keenest, around 5.25% (Knight Frank Seniors Housing Review 2025/26, Q3 2025). Operational and regional care homes price materially higher, with net initial yields of 6%-plus, reflecting the trading risk a lender and investor take on. The Akari Care portfolio, for example, traded at a 9.8% initial cash yield in 2024.
How big is the UK care home investment market?
Knight Frank recorded a record £3.2bn of healthcare transactions in 2024 and forecast around £12bn for 2025, with the bulk of value through platform and whole-company M&A rather than single assets. More than half of demand came from overseas capital.
Why are care home prices quoted per bed?
Per-bed pricing normalises homes of different sizes. Christie & Co reported completions across a wide £30,000 to £360,000 per bed range in 2024, with the spread driven by CQC rating, location, building quality and trading profit. A trading home is ultimately valued on its stabilised profit and going-concern value, not a per-bed rule of thumb.
Buying or selling in the sector?
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