Openings of care homes for older people in England in 2020 rose eight per cent on the previous year while closures fell 24 per cent despite the pandemic, according to a report by CSI Market Intelligence.
The resilience showed by the sector resulted in a net increase in care home beds – the first since 2017.
The findings are included in CSI Market Intelligence’s sixth annual report into the care home sector titled Say Hello Wave Goodbye 2020.
“I started work on this report in the honest belief that, as in previous years, the market would be leaking beds - even more so because of coronavirus - so I have been pleasantly surprised by the outcome," said CSI Market Intelligence founder, director and report author Mike Short (pictured).
The average size of care homes that opened in 2020 was around 50 per cent higher than those that closed, and the dementia nursing home sector accounted for over half of all new beds.
Yet it was not all about size as there were 19 per cent more openings of smaller homes – of 40 beds or less – than of larger homes with 61 beds or more, Short said.
Homes in the smaller sector accounted for around three-quarters of all closures. Short said that proved that - while there is still confidence in opening a smaller home – the older style of home of a similar size is the most likely to close.
In over half of all closures, the home had either a ‘Requires Improvement’ or ‘Inadequate’ rating by the Care Quality Commission at the time.
Meanwhile, sales and purchases of existing homes during the year were down around 10 per cent on 2019, but a quarter of trades during the year involved the Four Seasons Health Care brand that is under administration.
Excluding Four Seasons, the acquisitions market was around 33 per cent down year on year.
“But all indications are that there is a large quota of delayed and new deals that will take place over the next year,” said Short.
The Say Hello Wave Goodbye 2020 report can be obtained free of charge from www.csi-marketintelligence.co.uk/shwg.html or by emailing the author Mike Short at mike@csi-marketintelligence.co.uk.
