Knight Frank Forecasts C. £12 Billion Of UK Healthcare Property Transactions In 2025
The UK market is on track to complete c. £12 billion of healthcare property transactions in 2025, according to the latest forecast by leading global property adviser Knight Frank.
This figure, which would represent a record for annual investment into the sector, is more than treble the long-term yearly average, driven by a significant uptick in appetite for exposure to the healthcare real estate sector from cross-border family offices, insurance firms and REIT investors who are attracted to the sector’s countercyclical characteristics amid an increasingly uncertain market environment.
As at the end of Q3, £7.85 billion of UK healthcare property deals have transacted this year, £6 billion of which have been completed by Knight Frank.
Looking forward, Primary Health Properties’ £1.8 billion deal for Assura PLC is likely to be one of the most notable deals in Q4, creating a portfolio valued at c.£6 billion and an operating platform which is expected to be well-placed to attract further investment from global fund managers.
An additional £2 billion of transactions are due to be completed by Knight Frank in the final quarter of the year. Alongside further pipeline deals transacted by active capital sources before the end of the year, this will bring full-year investment volumes to c. £12 billion for 2025.
Well-capitalised global investors increasingly value the synergies and efficiency gains inherent in platform and whole-company acquisitions, with the bulk of anticipated Q4 investment volumes materialising through M&A as opposed to single-asset or portfolio acquisitions.
Total investment volumes in 2024 were £3.2 billion, currently the highest annual figure on record but set to be eclipsed by 2025’s totals. The five-year average annual transaction volumes in the sector stand at £2.4 billion.
UK healthcare: A magnet for global capital
Several key deals transacted this year typify the sector’s strong investment momentum. US-listed care home investor CareTrust’s £448 million acquisition of Care REIT represented the firm’s entry into the UK market, reflective of a broader trend of international REITs and sector-specialist investors capitalising on supportive dynamics in 2025 to make their entry into the high-performing UK market via significant platform acquisitions.
US capital has accounted for a high proportion of UK transaction volumes in recent years, and in 2025 several have taken opportunities to consolidate and scale newly acquired operating platforms. Foundation Partners’ £100 million deal for Hartford Care is indicative of this theme, following Welltower’s acquisition of Care UK in 2024.
Both domestic and international institutions have sought to cement their foothold in the sector this year, with RLAM and Franklin Templeton behind key deals in 2025 which saw them deepen their exposure to UK care homes. Additional opportunistic acquisitions, such as Omega Healthcare’s acquisition of the remaining Four Seasons Health Care portfolio, have continued apace.
Ryan Richards, Associate at Knight Frank, commented:
“2025’s record UK healthcare property deal volume has been fuelled by a high volume of consolidation and M&A in the sector, with established domestic operators and international investors each seeking to capitalise on the efficiency gains available from whole-platform deals. While PHP’s acquisition of Assura has gained the most attention, a number of significant whole-company deals in H2 will cap off a highly active year for investment into the asset class. The trend toward platform plays looks set to continue into next year, signalling that we may be in the midst of a multi-year boom for capital inflows to UK healthcare.”
Julian Evans, Partner and Global Head of Healthcare at Knight Frank, commented:
“The strong operational performance of the UK healthcare property market over recent years has bolstered the sector’s position as a magnet for global capital. The sector’s defensive characteristics enhance its appeal to diversified global investors seeking downside protection against persistent macroeconomic and geopolitical turbulence, while a number of sector-specialist international investors have also taken advantage of supportive macro trends in 2025 to make their entry into the UK market.
“Knight Frank alone has completed on £6 billion of UK healthcare transactions in Q3, with a further £2 billion set to complete in the final quarter of the year, cementing an outstanding year for our team and the sector at large. Looking ahead to 2026, persistent uncertainty in global markets is set to channel further institutional capital into defensive and countercyclical sectors, particularly those offering a prominent operational component which provides opportunities for value creation through active asset management. The UK healthcare property market is well-positioned to capitalise on this demand, building on the record level of investment into the sector in 2025.”
