Why Yorkshire? The Market Case to Build Now

A 12,000 Bed Care Home Shortfall With an Extremely Low Development Pipeline to Address It
Yorkshire is facing what is possibly the greatest shortage of care homes in England. Currently, there is approximately a 12,000-bed shortage. However, the regional development pipeline will provide approximately 435 new beds; i.e. only 3.6 % of all identified needs. Also, according to the King's Fund, as of 2014, the number of nursing home places within Yorkshire and Humber had decreased by 21%. At the national level, the number of care home beds per 100 people aged 75 and above has declined from 11.3 to 8.3 (a 26% decline) since 2012. In comparison, the decline for the region of Yorkshire is greater than at the national level. Therefore, as construction companies build or expand their capacity, they are entering a market where demand for this type of service is extremely high, and there is almost no additional competition.

Hospital Discharge Pressure Continues to Get Worse
Yorkshire hospitals have lost 224,936 bed days for patients who are clinically ready for discharge, but they don’t have a place to live. The number is most likely much greater, as about two-thirds of Yorkshire’s NHS trusts did not reply to the Freedom of Information request. This is not just a statistic to be set aside; it shows the gap between actual demand and the availability of care homes. It will also continue to apply increasing pressure on local government to develop new care capacity in the area.

Occupancy is holding, but Nursing beds are under pressure

Average occupancy rates in general care homes in Yorkshire and the Humber are approximately 84%. While this falls short of the current UK national average (approximately 86%), it indicates that there is still capacity available before saturation may occur in the local market. In contrast, the UK average for nursing beds is currently at 88-91% occupancy. The loss of over 200 nursing beds in North Yorkshire in recent years, largely due to home closures and staff shortages, has put pressure on the remaining resources. This will create opportunities for the development of higher-dependency and nursing facilities. These types of facilities attract the greatest weekly fee income per unit and the majority of NHS-funded placement business.

Lower Lands Costs, Better Development Economics

Land acquisition costs in Yorkshire are relatively low compared with those in London and other areas of the south east. For example, while a new 60-80-bed build can cost approximately £7-£12 million to develop, less costly land in Yorkshire yields better overall development returns. As well as being significantly lower than the £1,548 charged by care homes in London each week for self-funding residents (£1,116 on average), the lower construction costs and lower land prices associated with developing in Yorkshire mean that the development economics are often comparable to those found elsewhere. This applies particularly to developers who target both self-paying customers and customers whose care is funded by the NHS.

A Growing Elderly Population Across the  County

Yorkshire is a large, diverse area. York is projected to see 36% growth in its over-65 population by 2040. The Leeds City Region, Sheffield, and East Riding have significant and increasing populations aged 75–85 years, the group most likely to require residential care within the next 10 years. Purpose-built homes with over 60 beds are the fastest-growing sector nationally, up 3.6% from December 2025. Homes with fewer than 20 beds dropped by 6%. The market is consolidating to large, modern sites, which is what we do.

How we work in Yorkshire?

The way we do things is simple. Below are the stages of how we work with you, from the moment you first get in touch to the delivery of your new healthcare property.

Stage 1: What happens at this stage?
Initial conversation (First Contact): A discussion about your project (site, scale, time frame, budget). There is no obligation and no jargon. If there is something that cannot be done, or if there is a reason why, we will advise accordingly.

Feasibility / Site review (Stage 2) Assessment of your site/building. An honest assessment of what can be achieved, the cost implications and the current state of play with regard to the local planning policy.

Design and Planning (Stage 3) Healthcare Architects prepare layouts for your building that comply with CQC Requirements, HTM/HBN Standards, and Part M Accessibility Rules. We also manage the planning process for you.

Build/Project management (Stage 4) We undertake all aspects of the construction process (Structural, Mechanical/Electrical; Fit-Out); including providing you with regular updates on our progress and a Dedicated Project Manager based at your site.

Hand Over/Commissioning (Stage 5): We hand over your new facility, fully compliant with CQC Registration Requirements. We remain contactable after handover for any snagging issues or general support.