Industry Analysis & Industry Trends
The Retirement Homes industry is expected to generate revenue of £4.9 billion during 2016-17, a fall of 0.1% on the previous year. Although revenue grew in 2014-15 and 2015-16, overall, it is expected to contract at a compound annual rate of 0.7% over the five years through 2016-17. The major negative impact on the industry was the downturn that precipitated a debt crisis as tax revenue plummeted. In response, the government curtailed public expenditure, including the grant it provides to local authorities for services such as care requirements. 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... purchase to read more
Industry Report - Starting a New Business Chapter
The barriers to entering this industry are considered to be 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 will also need 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.
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