Needing care: Pressure on funding from the government has limited industry growth

The Retirement Homes industry is expected to generate revenue of £5.3 billion in 2018-19, increasing by 0.2% on the previous year. Industry revenue is expected to grow at a compound annual rate of 0.6% over the five years through 2018-19. Local governments supply funding for spending on the industry's services, either fully or partially, depending on a financial assessment of an individual's needs. Constrained local government budgets has limited industry revenue growth over recent years. Many operators have been forced to cross-subsidise local-authority beds with fees from self-funded residents.Demand for the industry's services over the past five years has been sustained by ageing baby boomers and the increasing time constraints that British families more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • The ageing of the baby-boomer generation has increased demand over the past five years
  • Operators have struggled to raise enough funds from private residents to cover funding shortfalls
  • The potential loss of the free movement of EU labour could significantly affect the industry
  • Industry Report - Starting a New Business Chapter

    The barriers to entering the industry are moderate. Barriers include the cost of acquiring land and building a residential facility, recruiting staff and meeting the government’s minimum standards. A newly established facility needs to attract a critical mass of residents before profitability can be attained. Setting up a retirement home requires capital-intensive investment in property. With a trend towards larger homes, the financial barriers to entering this market have been steadily increasing. However, a market for selling freehold retirement home properties has developed. Retirement homes can also be purchased on the open market...purchase to read more.

    Additional Insights for the Retirement Homes Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Retirement Homes Industry are

  • Provision of appropriate facilities
  • Optimum capacity utilisation
  • Access to multiskilled and flexible workforce
  • IBISWorld analysts also discuss how external factors such as Population aged 65 years and over and Real government consumption expenditure in the Retirement Homes industry impact industry performance..

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    What's in this report

    What is the Retirement Homes Industry?

    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. Industry operators typically provide room, board, supervision and assistance with day-to-day tasks. The industry does not 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).

    Industry Products
  • Private retirement homes
  • Council-run retirement homes
  • Voluntary non-profit retirement homes
  • Industry Activities
  • Providing assisted-living facilities
  • Administering retirement communities
  • Providing homes for the elderly with minimal nursing care
  • Administering rest homes without nursing care
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Population aged 65 years and over
  • Real government consumption expenditure
  • Real household disposable income
  • Average weekly hours of work

  • Current Performance
  • The ageing population
  • Funding shortfalls
  • Organising operations
  • Chart: Revenue Growth

  • Industry Outlook
  • Leaving the European Union
  • Demand expansion
  • Potential changes
  • Table: Retirement Homes Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Retirement Homes Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Combined Facilities Support Activities
  • General Building Cleaning
  • Grocery Wholesaling
  • Temporary-Employment Placement Agencies

  • Products & Services
  • Private retirement homes
  • Voluntary non-profit retirement homes
  • Council-run retirement homes
  • Chart: Retirement Homes Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Women
  • Men
  • Chart: Major Market Segmentation for the Retirement Homes Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Retirement Homes

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Retirement Homes Industry

  • Industry Globalization
    HC-One Ltd,
  • Table: HC-One Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Retirement Homes Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Retirement Homes Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A house funded by a charity that offers accommodation for poor people.
  • Care Home
  • A residential home that provides 24-hour general care. Some, but not all, have registered nurses.
  • Palliative Care
  • Care provided to those that are terminally ill.
  • Self-Funder
  • A retirement home resident that pays their own way rather than relying on public money.
  • What Our Customers Say

    Why buy this report?

    The Retirement Homes market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Retirement Homes:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Retirement Homes market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Retirement Homes, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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