The UK Care Home Market: 5 Part Series - Part 1: How old is the UK?
Select Portfolio offers a unique range of UK based care home investment opportunities, designed to provide a lucrative and sustainable source of income, while simultaneously acting as an investment in the future of our loved ones. We’ve put together an insightful five part series looking, in detail, at the care home investment market and why this sector is becoming increasingly important to the UK’s ageing population. In Part 1 we’ll be taking an in-depth look at the UK’s ageing demographic and why care home investments are becoming increasingly important in the UK.
Part 1: How old is the UK?
The UK population is ageing. According to the Office for National Statistics the country is at its oldest ever, with those aged 65+ now making up almost 18% of the population (11.4 million people), and this number predicted to rise to 25% by 2044. The number of people aged 75 and over is also increasing, now making up 8% of the population. As the population continues to age, care for our elderly is becoming an increasingly pressing concern and care home investments are becoming increasingly vital.
An ageing society means an increased numbers of elderly people, often living with chronic, long-term health care requirements. Official figures predict that one in five people in the UK today will live to see their 100th birthday. This puts a tremendous strain on the UK health care sector and drastically increases the need for investment in quality care facilities. Current statistics suggest that 7 in every 1,000 people above the age of 60 in the UK are living in care homes. With the proportion of UK over 60s predicted to rise to approximately 1 in 3 people by 2086, this is certain to create incredible demand for quality health care facilities.
The strain on the care sector is only exacerbated by the significant increase in age-related illnesses, such as dementia. The UK dementia crisis is well-documented – in fact, in the years 2010 to 2030 it is predicted that there will be an 80% increase in demand for health and social care for people living with dementia. The House of Lords “Ready for Ageing?” report claims that the UK is currently ‘woefully underprepared’ for the imminent increase in care demand; and contains a call for the UK government to address the implications of our rapidly ageing population.
It is important to remember that the UK’s ageing population is a positive result of our improved health care and significant medical advances. While the added time with our loved ones should undoubtedly be celebrated, it is also important to recognise the increased care requirements that this will generate and ensure that the facilities we have available are able to accommodate.
As the demand for care increases so too does the potential for investment in this growing market. In part 2 of this five part care investment series, we’ll be investigating the sector’s current sources of funding and how care home investment not only benefits the care sector and its dependents, but also provides investors with significant and sustainable financial returns.