The Oxfordshire Care Market: What the Data Shows

South east has highest rate of self funding care home residents in England.

The South East area has the largest percentage of self-funders among care home residents of any region in England, at 47.5%, well over the national average of 37%. Oxfordshire is in the middle of this market. High levels of homeownership, above-average property values & high local wage income are all supporting a strong & stable private pay care market.
This will have an impact on development economics. Self-funders pay much more than council-funded rates, typically 20-30% more. This provides better revenue per bed & allows for quicker occupancy to economic level. If you were building a new 60-80-bed facility with a primarily self-funded or mixed-funding business model, Oxfordshire is one of the best markets available (outside London) in which to do so.

Weekly care home fees in Oxfordshire are well above the national average
Weekly care home fees in Banbury are approx. £1,542, while the national average for residential care is roughly £1,298. In areas like Oxford and other affluent market towns, such as South Oxfordshire and the Vale of White Horse, weekly fees could be even higher depending on where your facility is located and who your target client is. Fee increases nationally are rising; self-funded care home fees increased by 10% between December 2024 & December 2025. However, the Oxfordshire market is starting from an already elevated base and has many potential clients who would not need to switch to less expensive options to afford those increases.

Supply Is Limited, and the concentration of Old Stock creates an Opening

Oxfordshire has 146 CQC-registered care homes with around 6,805 beds, a relatively tight market for a county of over 600,000 residents. New development in the South East has concentrated in London and the immediate commuter belt, leaving Oxfordshire towns like Witney, Abingdon, Bicester and the north Oxfordshire market towns comparatively under-supplied with modern, purpose-built stock.

Nationally, 70% of care homes are over 20 years old, and 27% were converted from other uses rather than purpose-built, meaning they often lack the design features modern care requires. In Oxfordshire, many homes in this category are trading on their location and reputation, but are increasingly vulnerable to newer purpose-built competition that can offer en-suite rooms, wet rooms, and modern dementia environments.

New Build Development Is Concentrated in the South — But Oxfordshire Is Ready

Savills reported that new care home delivery has primarily focused on private-pay schemes in London and the South, where development economics are more viable. Investment volumes in UK healthcare real estate reached £1.5 billion in H1 2025 alone, 60% higher than the full-year 2023 figure. That capital is looking for sites, and Oxfordshire sits in the right geography to attract it.

The county offers a practical advantage over central London too: lower land costs, less planning congestion in many districts, and easier staff recruitment in towns with established workforces. For a developer or operator weighing up South East locations, Oxfordshire frequently offers better viability than an equivalent London site.

Hospital Discharge Demand Is a Consistent Pressure

Oxfordshire County Council's own strategy documentation highlights hospital discharge as an ongoing pressure on care capacity. The county's Home First model is designed to support independent living after hospital stays, but there will always be a significant cohort of people who need bed-based care. Homes with the right clinical infrastructure, nurse call, assisted bathrooms, and adequate communal space are consistently better placed to receive NHS discharge placements and secure that income stream alongside self-funded residents.

How we work

The process from initial contact through to handover of the new facility is simple as follows:

First Phase: What occurs
1. First Contact - We will have an initial conversation regarding your project - we need to know such things as: site location, service type, number of beds, budget, time-scale. During the initial conversation, we will provide you with our honest assessment of what can be achieved (and what cannot) and advise on the current state of the planning process within your local authority area.

2. Feasibility/Initial Site Assessment
We will assess the potential of either a new build development or the redevelopment of an existing building - site viability, the local planning environment, estimated costs and timescale. At no point during the feasibility/initial site assessment phase are there any obligations that you must commit to.

3. Design / Planning - Our Health Care Architects will prepare layouts for your proposed development in accordance with all relevant CQC, HTM/HBN and Part M guidelines. We will also engage with Local Authorities prior to submitting a formal planning application and coordinate the preparation and submission of the same.

4. Build/Project Management
We will undertake and manage the entire construction process - structural works, mechanical/electrical services installation, fit out, etc., with one of our experienced project managers appointed to oversee the project and ensure it progresses in accordance with agreed-upon time-scales. Throughout the construction period, you will receive regular progress reports.

5. Hand Over / Commissioning
Upon completion of construction, we will deliver a fully functioning facility to you, ready for inspection by the CQC. Following the CQC registration of your new facility, we will continue to assist you as required until any identified snags are resolved.