by Donna Lund
For the first time in Britain’s history, people over the age of 65 are outnumbering those under 16.
These ‘Post War Baby Boomers’ have enjoyed vast advances in preventative healthcare and medicine, and as a result are living much longer than previous generations.
One consequence of this has been a consecutive increase in the number of residents in care homes. However despite augmented demand, profit margins are on a downward trajectory due to limited public funding as generic care home operators increasingly struggle to absorb costs.
Whilst many standard suppliers struggle, luxury care providers have been capitalising on a lucrative niche within the market (7,000 new beds created within luxury homes across the UK last year) and with significant investment coming from the USA, it would seem that growth within this space is inevitable and shows no sign of slowing.
Geographically, more traditionally ‘wealthy’ areas have seen the most impressive growth, with London and the South East entertaining a seemingly endless demand for ‘hotel style’ care. However, significant investment is now being made nationwide and it would seem that the market has more longevity than previously anticipated.
So Why The Success?
Organisations currently thriving within the luxury care market are enjoying their position thanks to their ability to spot and supply a niche demand. This opportunistic attitude, and focus on quality, has seen them overtake generic care providers, regardless of their high fees and limited availability.
RMG have accumulated over 100 years of experience working within niche healthcare sectors through our several consultants, and are enjoying watching the current developments within the Luxury Care market.