14 Nov A Future in Elderly Care Investment
The percentage of the UK population that is over 65 is steadily increasing, from 15.8% in 1995 to an expected 23.6% by 2035. By 2025, 2.8 million over 65’s will need nursing and social care.
The ageing UK population means that the number of elderly people needing purpose-built accommodation, such as care homes, will continue to increase.
Care home investments in the UK have typically returned favourable yields of up to 10% and benefited from a low threshold for entry. It can, therefore, be a worthwhile, hands-free investment option.
However, the sector faces a number of challenges. If the freedom of movement is impacted after Brexit, it could leave the adult care sector with staff shortages of around 115,000. 17% of England’s’ 1.3 million care workers (or 220,000) are foreign nationals.
Some care homes are also heavily reliant on subsidised funding from local authorities. If this funding is reduced, it could have an impact on your rental yield and even cause care home operators to shut down.
Despite this, Within the next 10 years, CCG aims to have successfully implemented an affordable housing solution model for the homeless, elderly and other niche communities including retired soldiers who have found employment and housing difficult after retiring from duty. Finding the right balance between cost, environment and quality of life will always be at the forefront of CCG’s priorities when it comes to providing suitable homes and investments