The UK Competition and Markets Authority (CMA) has warned that a series of completed acquisitions by US real estate investment trust Welltower could reduce competition in local elderly care markets across the UK.
The transactions, completed in October 2025, involved Welltower acquiring the real estate interests in hundreds of care homes operated by Barchester Healthcare, HC-One, Aria Care, Asprey Healthcare and Danforth Care. In total, the deals covered more than 640 care homes across the country.
Following a Phase 1 investigation, the CMA concluded that each merger raises a realistic prospect of a substantial lessening of competition in local markets for residential and nursing care services for the elderly. The regulator identified potential competition concerns in 30 local areas across England and Scotland.
The CMA’s review focused not only on care home operators but also on the role of property ownership in shaping competition. Welltower, which already owns more than 900 UK care homes, operates through structures that can allow it to influence pricing, investment decisions, refurbishment plans and operational strategies at care homes managed by third-party operators.
According to the regulator, Welltower may have both the ability and incentive to influence competitive conditions in areas where it owns multiple care homes and faces limited local competition. The CMA highlighted Welltower’s approval rights over business plans and budgets, responsibility for capital expenditure and rights to replace operators at certain sites.
The authority also examined the impact of changes in operators linked to the transactions. Some of the acquired care homes are now managed by companies affiliated with Apex Healthcare Properties or by Care UK, creating additional overlaps in local markets.
The CMA found concerns in both residential and nursing care services, with nursing care markets appearing particularly affected. The regulator said reduced competition could ultimately impact prices, quality of care and consumer choice for elderly residents and their families.
Welltower and Apex now have until 14 May 2026 to propose remedies aimed at resolving the competition concerns. If the CMA considers the proposed commitments insufficient, the deals will be referred to an in-depth Phase 2 investigation.
