Richard Harris

The UK healthcare market had a record-breaking year in 2025 with transactional volumes exceeding £12bn, according to Colliers’ latest figures.

Driven by whole company sales in the elderly care sector and significant M&A activity in hospital and primary care markets, there was also a dominance of US capital, whose sustained appetite for UK healthcare assets has fundamentally elevated the sector’s profile.

Richard Harris, co-head of healthcare at Colliers, said: “While we entered 2025 anticipating a record year for healthcare M&A activity, the market exceeded even our most-optimistic projections.

“Across my career as a healthcare real estate consultant, I have never witnessed transaction volumes of this magnitude.

“The high level of activity from US capital, such as Welltower, Omega, Ventas, CareTrust REIT, and Franklin Templeton, in particular, has redefined healthcare’s position in the broader commercial real estate landscape, intensifying market dynamics and raising the competitive bar across the sector.”

Across my career as a healthcare real estate consultant, I have never witnessed transaction volumes of this magnitude

An increased focus on specialist and complex care materialised during the last 12 months. However, rather than driving transactional activity, this sector has been characterised predominantly by debt and refinancing.

Colliers expects M&A in this space to centre on small to mid-cap operators, where consolidation opportunities remain compelling.​

The forward funding market presented a more-nuanced picture, notes the firm.

While established players including Octopus Real Estate, Target Healthcare REIT, Royal London Asset Management, and Elevation Advisors maintained activity, overall volumes remained relatively subdued.

Harris said: “Replicating 2025’s transaction volumes may prove challenging.

The high level of activity from US capital has redefined healthcare’s position in the broader commercial real estate landscape, intensifying market dynamics and raising the competitive bar across the sector

“However, we anticipate US institutional investors will continue their market dominance throughout 2026.

“These investors recognise and are executing a long-term consolidation play in a market that remains surprisingly fragmented given its scale and maturity.

“The persistent demand-supply imbalance provides a structural tailwind, while their deployment of sophisticated data analytics and operational technology is professionalising what has historically been, in many areas, a relationship-driven cottage industry.​”

Key deals in 2025 included:

• CareTrust REIT acquisition of Care REIT
• Omega acquiring the majority of Four Seasons
• Sale of 32 UK care homes to Franklin Templeton
• Confidential acquisition of Athena Healthcare Group, managed by Colliers
• Foundation Partners and Deer Capital acquired five care homes from The Graham Care Group and undertook management buyout of Select Healthcare Group
• Avery Healthcare acquired Artisan Care Group
• Downing exited nine care homes in a sale and leaseback transaction
• Target Healthcare REIT exited nine HC-One care homes