The UK’s care home market registered a record £10.25bn in transaction volumes in 2025, up 226% from £3.1bn in 2024, according to data from Cushman & Wakefield (C&W).

This was driven by £7.98bn of transaction activity in Q4, largely reflecting Welltower’s acquisitions of Barchester Healthcare and HC-One, which accounted for circa £6.4bn.

The continuing influx of US-based investor capital drove the surge in transactions throughout 2025, accounting for 88.6% of overall volumes, up from 54.9% in 2024 and 10% in 2023.

Excluding expenditure by Welltower, US investment in the UK’s elderly care home market remained at a record level of 57% of activity, underlining the depth of interest from this market, C&W said.

Additional large-scale players included Omega, The Care Trust and Ventas.

According to Peter Farnes, partner, healthcare markets, at C&W, the transaction volumes underline the market’s enduring appeal for international investors.

The scale and pace of US capital deployment, particularly in the final quarter, are reshaping the investment landscape and setting a new benchmark for deal activity, he said.

As a result, the market has increasingly shifted towards management contracts and platform-level acquisitions.

Farnes said: “Looking ahead, while overall transaction volumes are unlikely to replicate another year of record-breaking activity, mid-market deals, platform consolidation and operationally strong assets are expected to underpin sustained investment activity.

“Cost pressures from increases in the National Living Wage and employer National Insurance contributions will continue to be monitored, particularly for older, lower-fee homes; however, operators appear well positioned to manage these challenges.”