Care Market Insight: West Midlands

Market Overview 

In the West Midlands, we’re seeing a broad spectrum of buyers who are keen to acquire a range of quality care businesses - from experienced operators, corporate groups and international investors to first-time buyers and new market entrants. Due to a rise in demand for mental health services and the fact that fees are particularly high, there’s also great demand for mental health homes, especially from corporate groups. 

Areas such as Birmingham, where local authorities have increased fees up to 9%, are becoming increasingly popular. We’re also seeing that many operators from the South East, particularly smaller groups, are moving up to the West Midlands to hotspots such as Birmingham as they recognise that they can often get the same return on investment as they can down South but with lower outgoings.  

Energy costs continue to challenge operators up and down the country, although not as hard as we expected in some cases in the Midland due to many being in fixed-term contracts of between two and five years.  

Demand for specialist care: Barton House and Needwood House 

We recently sold Barton House and Needwood House in Cannock, Staffordshire, to national group, Care Concern. The homes, which provide mental health support to up to 48 residents, were in high demand, with a number of offers received. This sale illustrates the demand we’re seeing for quality specialist homes in the region. 

To find out more about the care market in the West Midlands, or to have a confidential chat about your business, contact Paul Reilly: paul.reilly@christie.com / 07791 979 041