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Retirement Homes in the UK Industry Data and Analysis
Retirement homes depend on self-funders or local council funding that covers the retirement needs of people who satisfy financial assessment means tests. Tightening government budgets have meant publicly funded fees have failed to cover providers’ operating costs, forcing retirement homes to cross-subsidise local authority beds with fees from self-funded residents. Revenue is anticipated to climb at a compound annual rate of 3.2% over the five years through 2025-26 to £12.0 billion, and it’s set to rise by 0.8% in 2025-26. Much of this is down to care homes' fees mounting to cover costs and being paid for by self-funders, who are saw their disposable income tick upwards in 2024-25, lifting industry revenue. Although the ageing population supports revenue growth, constrained government spending, delayed reform changes and rising costs (particularly for labour) have put pressure on profit. Demand for beds far outstrips the supply, which is driving investment into the industry.
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What's included in this industry analysis
IBISWorld's research coverage on the Retirement Homes industry in the United Kingdom includes market sizing, forecasting, data and analysis from 2015-2030. The most recent publication was released September 2025.
About this industry
What's this industry report about?
The Retirement Homes industry in the United Kingdom operates under the SIC industry code Q87.300. This industry provides residential and personal care for elderly and physically disabled people that are unable to care for themselves or do not want to live independently. Companies typically provide room, board, supervision and assistance with day-to-day tasks. The industry doesn't include residential homes with full-time nursing care (see IBISWorld report Q87.100) or residential care for individuals with mental disabilities (see IBISWorld report Q87.200). Related terms covered in the Retirement Homes industry in the United Kingdom include care home, self-funder, palliative care, domiciliary care and leasehold housing.
What's included in this industry?
Products and services covered in Retirement Homes industry in the United Kingdom include Private retirement homes, Council-run retirement homes and Voluntary non-profit retirement homes.
What companies are included in this industry?
Companies covered in the Retirement Homes industry in the United Kingdom include HC-One Ltd, Barchester Healthcare Homes Ltd and Care UK Holdings Ltd.
Performance
What's included in the Performance chapter?
The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Retirement Homes industry in the United Kingdom.
Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.
Products & Markets
What's included in the Products and Markets chapter?
The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Retirement Homes industry in the United Kingdom.
Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.
Geographic Breakdown
What's included in the Geographic Breakdown chapter?
The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Retirement Homes industry in the United Kingdom.
Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.
Competitive Forces
What's included in the Competitive Forces chapter?
The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Retirement Homes industry in the United Kingdom. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.
Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.
Companies
What's included in the Companies chapter?
The Companies chapter covers Key Takeaways, Market Share and Companies in the Retirement Homes industry in the United Kingdom. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.
Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.
External Environment
What's included in the External Environment chapter?
The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Retirement Homes industry in the United Kingdom. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.
Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.
Financial Benchmarks
What's included in the Financial Benchmarks chapter?
The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Retirement Homes industry in the United Kingdom. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.
Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.
Industry Data
What's included in the Industry Data chapter?
The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Retirement Homes industry in the United Kingdom.
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Frequently Asked Questions
What is the market size of the Retirement Homes industry in the United Kingdom in 2026?
The market size of the Retirement Homes industry in the United Kingdom is £12.0bn in 2026.
How many businesses are there in the Retirement Homes industry in the United Kingdom in 2025?
There are 3,566 businesses in the Retirement Homes industry in the United Kingdom, which has grown at a CAGR of 0.4 % between 2020 and 2025.
How may import tariffs affect the Retirement Homes industry in the United Kingdom?
The Retirement Homes industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Retirement Homes industry in the United Kingdom?
The Retirement Homes industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Retirement Homes industry in the United Kingdom grown or declined over the past 5 years?
The market size of the Retirement Homes industry in the United Kingdom has been growing at a CAGR of 3.2 % between 2020 and 2025.
What is the forecast growth of the Retirement Homes industry in the United Kingdom over the next 5 years?
Over the next five years, the Retirement Homes industry in the United Kingdom is expected to grow.
What are the biggest companies in the Retirement Homes industry in the United Kingdom?
The biggest companies operating in the Retirement Homes industry in the United Kingdom are HC-One Ltd, Barchester Healthcare Homes Ltd and Care UK Holdings Ltd
What does the Retirement Homes industry in the United Kingdom include?
Private retirement homes and Voluntary non-profit retirement homes are part of the Retirement Homes industry in the United Kingdom.
Which companies have the highest market share in the Retirement Homes industry in the United Kingdom?
The company holding the most market share in the Retirement Homes industry in the United Kingdom is HC-One Ltd.
How competitive is the Retirement Homes industry in the United Kingdom?
The level of competition is moderate and increasing in the Retirement Homes industry in the United Kingdom.
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