The predicted value of transactions, which is more than treble the long-term yearly average, is being driven by domestic and international interest in the defensive characteristics of the UK care home sector.

Ryan Richards, associate at Knight Frank, commented: ‘2025's record UK healthcare property deal volume has been fuelled by a high volume of consolidation and M&A in the sector, with established domestic operators and international investors each seeking to capitalise on the efficiency gains available from whole-platform deals.'

Knight Frank said well-capitalised global investors increasingly valued the synergies and efficiency gains inherent in platform and whole-company acquisitions, with the bulk of anticipated Q4 investment volumes materialising through M&A as opposed to single-asset or portfolio acquisitions.

Total investment volumes in 2024 were £3.2bn, currently the highest annual figure on record but set to be eclipsed by 2025's totals. The five-year average annual transaction volumes in the sector stand at £2.4bn.