Knight Frank, the global property adviser, has been appointed as exclusive residential care home property adviser to Anchor Hanover, the largest provider of specialist housing and care for older people in England.
Anchor Hanover aims to transform housing and care so people can have a home where they love living in later life. As a not-for-profit housing association, any surplus income is reinvested into its properties and services, enabling them to build more and ensure their properties are innovating for the future. The organisation owns or manages circa 48,000 housing properties and nearly 5,900 care rooms throughout England.
Knight Frank and Anchor Hanover have a long-standing relationship which will now be further strengthened by the new partnership, with a deep focus on national healthcare strategy and advisory services
Julian Evans, Head of Healthcare at Knight Frank, said: “We are thrilled to have been appointed by Anchor Hanover as their exclusive care home property adviser. We are exceptionally proud to partner with a such dynamic organisation whose core values are centred around client care and wellbeing and whose business shares many synergies with our own as an independent organisation with a unique culture and heritage. We are looking forward to working with Anchor Hanover to further bolster their market-leading offering via strategic advisory and consultancy around development funding, strategy & innovation.”
Jane Ashcroft CBE, Chief Executive of Anchor Hanover, said: “The changing needs of our ageing society mean demand for high-quality residential care is strong and set to grow. We want to provide more homes where people love living in later life and are delighted to be working with Knight Frank to ensure we’re well-positioned to meet that demand.”
Knight Frank’s latest Healthcare Capital Markets report highlighted the UK healthcare property market as achieving record investment volumes in 2020 totalling £2.7 billion despite the COVID-19 pandemic, 55% higher than the previous year. This comes as investors increasingly seek stable returns and long-term secure income meaning healthcare property has seen surging interest from investors both in the traditional sectors such as care homes and private hospitals, in addition to rising demand for more specialist assets and providers such as mental health, learning disability and children’s services including children’s homes, foster care and schools.
Despite healthy investment flows, the pandemic has posed an unprecedented operational challenge for the sector, with hospitals, care homes, GP practices and other specialist healthcare facilities adopting stringent infection control measures, often at a cost, and private sector workforces being stretched in many of the same ways as the NHS. The greatest concerns were understandably focused on care homes for older people which impacted investment volumes with the older people’s care sector representing 18% of all healthcare property investment, compared to 39% across the last five years.
Knight Frank’s research identifies a potential 6,500 care homes at risk of closure over the next 5 years, equating to 140,000 beds. This shortage will be exacerbated by the increased demand for care homes by 2050, which will see a national bed crisis in the UK as the share of people over the age of 80 is expected to surge over the next 30 years, with one in ten adults set to be over 80 by 2050, compared to one in twenty currently.
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