The demand for beds is continuing to outstrip supply according to the report, with an estimated shortfall of over 200,000 beds by 2050.

Knight Frank highlighted that UK care homes consist of older stocks and in some cases they are considered obsolete, due to their size and lack of en-suite and full wet room facilities.

In 2022 the number of care homes completed dropped by around 15%, yet approximately 10,000 new beds were granted via planning application.

This year has had a promising start with last year’s delays being completed and all completions adding to the existing circa 480,000 bed supply.

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When looking at which locations offer the best prospects for care home development, Knight Frank’s Development Hotspots Index highlights the dominance of the South East and East of England, with seven of the 12 hotspots falling into these regions.

This includes Greater London, which has the second-highest index score this year.

Julian Evans, head of healthcare at Knight Frank, said: “The UK elderly care market is at risk of reaching capacity by the end of the decade and this is a worrying projection.

“Not only must we build more care homes, but we must take action to support standing stock to reduce the level of home closures — which continues to work against the delivery of new homes as we attempt to grow the supply level.”