Christie Update on Property Market for Care

Christie & Co reports buyer demand indicates long term potential of its specialist sectors in the south West


Specialist business property adviser, Christie & Co provides an overview of the regional market in the South West & South Wales for the first half of 2019, reflecting on previous predictions, emerging trends and challenges facing the sectors.

Christie & Co reports buyer appetite throughout the South West remains strong across its specialist sectors, despite a greater level of caution in the market, as buyers become increasingly sensitive towards pricing amongst ongoing uncertainty. Although the slowdown in the housing market has made it more difficult for new entrants to acquire lifestyle businesses in the West Country, Christie & Co’s strong pipeline of deals throughout the South West & South Wales indicates long term confidence in its specialist sectors.

The increasing quality of care home stock in the region is attracting a wide variety of purchasers from corporate operators though to first time buyers. Whilst capital appreciation has remained subdued, Christie & Co’s activity in the West Country has been strong throughout the first half of the year, with a 48% increase in viewing numbers and 86% increase in offers on their clients’ healthcare businesses. The widely publicised staffing shortages are becoming ever more acute in the more rural areas, which limits buyer demand, and values are softening in these more remote locations. Some nursing home operators are considering de-registering their nursing care given the challenges they face in the recruitment of qualified staff. 

Rob Kinsman, Regional Director – South West comments, “Whilst there is greater hesitancy in the market, our pipeline of deals in the South West has never been greater. This deal volume clearly illustrates the underlying demand from innovative operators who see long term potential. We are predicting that the region will continue to provide exciting opportunities across our specialist sectors.”