Care home sector revenue poised to recover after Covid dip - report

Care home revenue will recover from a dip in 2020-21 due to the success of the vaccine programme, according to a report by AMA Research.

Residential Care Homes Market Report – UK 2021-2025 estimates revenue dropped by almost three per cent across the sector in 2020-21 due to the Covid-19 pandemic.

The pandemic led to a sharp drop in the care home population and therefore occupancy levels during 2020.

Despite the drop in value within the last year, however, AMA Research expects a return to growth from 2021 onwards thanks in part to the vaccination scheme.

“The future for the care home sector appears reasonably positive, assuming the current vaccination programme succeeds in suppressing the threats posed by Covid-19 and its mutant strains,” said AMA Research author Roshni Patel.

“With the UK population expected to continue ageing during the next few decades, demand for care home places should remain high throughout much of the UK,” she added.

AMA Research expects the UK will have a shortfall of 28,000 bed spaces by 2025.

“While Covid-19 may have reduced the demand for care home places in the short term, the risk of potential shortages of bed spaces is likely to persist as the decade progresses,” said Patel.

AMA Research estimates the private/independent sector accounted for 91 per cent of the overall care market value in 2020-21 with the public sector comprising the remainder.

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