As of October 2026, there are approximately 487,000 care home beds registered with the Care Quality Commission (CQC) in England alone.
According to CQC data, the number of beds in care homes isn’t keeping up with the needs of an ageing population – in fact, there were nearly 450 fewer care home beds per 100,000 adults aged 65 and over in April 2026 compared to April 2019.
As care homes change in shape and size, and the market itself changes, it’s no surprise that our healthcare lawyers are seeing an influx of care home acquisitions and sales.
Our specialist team have worked on care home transactions for decades, and they’ve pooled their knowledge into this useful guide for any prospective buyers looking to start, or grow, a portfolio in the care home ownership space.
So, when a target home has been spotted, and the journey to purchase is about to start, here are seven of the key areas that care home buyers should look at.
1. Care home transactions start with legal due diligence and commercial viability
It might sound obvious, but it’s worth stating up front – buyers should start by making sure the care home acquisition opportunity makes sense commercially.
This will involve reviewing management accounts, historic financial performance, liabilities, loans and other key financial information to assess how the business is currently performing and where future opportunities or challenges may lie.
Getting the full picture matters here, because a care home that is underperforming commercially isn't necessarily a poor acquisition. Some buyers actively seek businesses they believe can be improved through investment, operational changes or stronger management. However, it's vital to understand exactly why the business is performing as it is before moving forward.
A care home that is underperforming commercially isn't necessarily a poor acquisition.
For example, occupancy levels, bed capacity and performance trends can all provide valuable insight into the operational health of the business.
This is where a support team comes in – accountants and/or financial advisers – alongside healthcare specialist lawyers, to make sure the niche and nuanced advice is accurate to avoid spiralling costs.
2. Look beyond the headline CQC rating
The CQC rating is naturally one of the first places to look when assessing the general performance and prosperity of a care home.
A rating of 'Good' or 'Outstanding' can provide reassurance, while 'Requires Improvement' or 'Inadequate' may naturally raise concerns. However, experienced and successful buyers rarely rely on the headline rating alone. The real question is what sits behind the rating
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Of the issues or concerns flagged, which were one-off problems that have since been rectified? Or is there evidence of wider concerns relating to staffing, compliance or leadership? Are there problematic property dilapidations, or unaddressed questions around infection control?
Buyers should carefully review inspection reports, enforcement notices, action plans and evidence of completed improvements.
For purchase transactions, buyers can manage many regulatory issues through legal negotiations, such as price adjustments or contractual protections. However, significant enforcement action or concerns about the home's ability to continue operating may prove far more difficult to overcome.
UK care home transaction volumes reached a record £10.25 billion in 2025, demonstrating the scale of activity and competition within the market.
3. People are the business
Aside from the care home residents – who are the priority when considering care continuity throughout the sale – the workforce of the care home is a huge factor in purchase transactions.
The quality, experience and stability of the team can have a direct impact on resident care, regulatory compliance and financial performance. That's why employment due diligence is such a key part of any acquisition.
Buyers should investigate:
Staffing levels and workforce structure
Staff turnover rates
Wage costs
Key management personnel
Grievances, disputes and employment claims
Employment contracts and HR records
Missing contracts, inconsistent documentation or unresolved employee issues can quickly become areas of concern.
It's also important to remember that acquiring a business doesn’t automatically mean a buyer has the ability to restructure, grow or trim the workforce. Employment law obligations continue to apply, and any proposed changes should be carefully considered with specialist advice.
4. Get clarity on the property position
As a business is centred around physical space, the property itself represents a substantial part of the overall value for most care home acquisitions.
Whether the home is freehold or leasehold can significantly influence the transaction. Buyers should carefully review property ownership, title documentation, lease arrangements, repair obligations and any anticipated capital expenditure.
Particular attention should be paid to:
Structural issues
Dilapidations
Planned maintenance costs
Landlord consent requirements
One of the most common delays to completion is landlord consent – the process can often take longer than expected and become a source of delay if not addressed early.
5. Check that contracts are where they should be
One surprisingly common issue is discovering that important contracts are not held by the business being sold. Instead, they may sit in the name of the current owner personally, or another connected company.
For example, a waste removal contract may be in the name of the General Manager, or a fire inspection contract may be in the name of a Building Manager. While this can often be resolved, it frequently creates unnecessary complications and delays during the transaction.
Buyers should ensure that key commercial and compliance arrangements are properly documented and legally owned by the entity they intend to acquire.
As a business is centred around physical space, the property itself represents a substantial part of the overall value for most care home acquisitions.
6. Avoid finance delays
Financing delays are one of the most common causes of slow-moving transactions.
Securing funding for a care home acquisition isn’t impossible. Buyers should engage with lenders as early as possible and understand what information will be needed and what conditions will be laid out. Additional lender requirements can significantly extend transaction timelines if they emerge late in the process.
This has become particularly important as investor confidence in the sector continues to grow. UK care home transaction volumes reached a record £10.25 billion in 2025, demonstrating the scale of activity and competition within the market.
A buyer with a clear business plan, realistic financial forecasts and a strong understanding of the home's operations is likely to be viewed more favourably than one relying solely on the value of the property.
Due diligence for all areas will often run concurrently, so it’s important that commercial property and secured lending experts are consulted early to avoid delays.
7. All of the above amounts to one thing – bring specialist advisers in early
The most successful acquisitions are often supported by a joined-up advisory team from the outset.
Depending on the transaction, that team may include:
Lawyers – covering employment, property, regulatory and corporate matters
Accountants
Tax advisers
Care home transactions cross multiple disciplines, so coordinated, early advice can help identify issues before they become a problem, and can keep the deal progressing efficiently.
Preparing for success
A good acquisition is not simply about securing the lowest purchase price. It’s about finding the right fit for the buyer’s risk appetite, budget, growth aims and existing portfolio.
Buyers who investigate early and thoroughly, and who build the right team of healthcare specialist advisors around them, are far better placed to complete successfully and achieve their long-term objectives.
At Orwins, our expert corporate team advises buyers and sellers throughout the care sector, helping them navigate complex transactions with confidence, clarity and commercial focus.
