The UK healthcare property investment market is on track to post a new record high in 2025, according to the latest forecast by Knight Frank.
Circa £12bn of deals are due to complete this year, which would represent a record for annual investment into the sector and is more than treble the five-year average of £2.4bn.
At the end of Q3 2025, £7.85bn of UK healthcare property deals transacted – more than the record £3.2bn of deals recorded in the whole of 2024 – with Primary Health Properties’ £1.8bn acquisition of Assura likely to be the largest deal to complete in Q4.
Ryan Richards, associate at Knight Frank, said: “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, added: “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 £6bn of UK healthcare transactions in Q3, with a further £2bn 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.”