UK Healthcare Marketbeat Reports

For the data behind the commentary, download the full Q3 2024 UK Healthcare Report.

Record-Breaking Investment Surge in Q3 2024

Q3 2024 experienced a remarkable surge in investment volumes, reaching approximately £880 million and bringing the year-to-date total to around £1.6 billion. This quarter's volumes are the highest since Cushman & Wakefield began tracking the elderly market in 2019, surpassing the previous record set in Q1 2022. The growth was anticipated, with many deals closing in Q3 and a strong pipeline suggesting that 2024 will set a new annual record. The increase in activity was driven by strategic investor focus on robust earnings rather than discounting, indicating a healthy and attractive market.

Steady Occupancy and Fee Increases

Overall market occupancy slightly rose to 89%, driven by a rebound in Grade A occupancy to 85%. The Average Weekly Fee (AWF) increased across all asset grades, with a notable 6.7% year-over-year rise, surpassing inflation projections. Grade A properties continue to command higher fees, and regional disparities persist, with southern regions leading in AWF.