This is an extract from the January Home Care and Supported Living Market Report.
To explore the full analysis and insights behind these findings, read the January 2026 Home Care and Supported Living Market Report, which examines the key trends shaping the sector.
Private Sector Strengthens its Grip
Analysis of the homecare and supported living ownership landscape shows slight structural change, with private operators consolidating at the expense of other ownership models, deepening the pool of assets available for corporate M&A.
Privately-owned homecare businesses in England rose from 12,777 to 13,425, with similar expansion in Scotland and Wales. The private sector’s market share increased from 78.6% to 79% from 2024 to 2025, underlining its central role in investment and consolidation activity.
Other ownership models have contracted. Charities, councils, and societies saw their share fall from 21.1% to 20.7%, reflecting financial pressures and asset rationalisation in the public and third sectors.
The reduction of charitable providers provides a predictable pipeline of acquisition targets. This trend positions the care home market as a predominantly private, commercial sector, ensuring that M&A will continue to shape its structure in the years ahead.
However, although the overall trend points towards private sector dominance, there are clear regional differences. In England, Charity, Council, and Society providers represent only 12.3% of the market in 2025, while in Scotland the figure stands at 63.5%. This highlights the distinct structural profiles of the two nations.
A Prime Environment for Strategic Exits
The homecare sector remains a compelling investment opportunity for 2026. Strong demand, the ongoing shift from residential care, and a fragmented market continue to drive consolidation.
Owner exits are well supported by consolidators, national groups, and financial investors, creating competitive tension and attractive valuations. The prevalence of independent operators presents significant integration potential for acquiring groups and offers the opportunity to create more efficient and scalable operations.
Redwoods Dowling Kerr’s specialist healthcare team provides owners with end-to-end guidance throughout the sale process, from market preparation to buyer engagement. By leveraging market intelligence and sector expertise, we ensure that owners achieve the best possible outcomes in a dynamic and evolving marketplace.
*This data is a result of a blended analysis of data published by CQC, SCI, WCI and Companies House, which has been developed for MI by Altius BI. Figures do not include NI.
For further insight into consolidation trends, ownership demographics and investment drivers, access the full January 2026 Care Home Market Report.
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