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Care Home Cost vs Supply UK 2026 — Do Fewer Beds Mean Higher Prices?

Age-adjusted analysis of the relationship between care-home bed capacity (per 100 residents aged 75+) and residential weekly cost across English local authorities.

Cost by bed-supply quartile

LAs are ranked by active registered care-home beds per 100 residents aged 75+ and split into four equal groups. For each quartile we show the average weekly residential council rate.

QuartileBeds /100 age 75+ rangeAvg weekly costAvg annual costLAs
Bottom quartile (lowest beds per 75+ resident)3.07.5£1,369£71,18828
Second quartile7.69.3£1,404£73,00828
Third quartile9.310.5£1,375£71,50028
Top quartile (highest beds per 75+ resident)10.514.0£1,390£72,28025

Primary supply metric: active registered care-home beds per 100 residents aged 75+. Council rates from NHS England ASC-FR for residential care. Annual = weekly x 52.

Correlation

Pearson r = 0.073 between beds per 100 aged 75+ and weekly residential cost, across 109 LAs with both published. Cost is confounded by London and South East staffing and land costs — treat the relationship as descriptive, not causal.

40 local authorities with the lowest bed supply (with cost)

Sorted ascending by primary supply metric. Only LAs with both adequate bed coverage and published cost data.

Local authorityBeds /100 age 75+/10k total (legacy)Weekly costAnnual self-funder est.
Hackney3.00.5£1,246£84,240
Haringey3.10.9£1,202£81,276
Southwark3.90.5£1,190£80,444
Kensington and Chelsea4.30.8£1,422£96,148
Westminster4.30.4£1,591£107,536
Camden4.50.6£1,392£94,120
Tower Hamlets4.80.3£1,415£95,680
Newham5.10.7£1,249£84,448
Brent5.21.4£1,174£79,352
Hounslow5.71.1£1,633£110,396
Lewisham6.21.6£1,213£82,004
Barking and Dagenham6.31.1£1,347£91,052
Bromley6.31.5£1,129£76,336
Cornwall6.33.5£1,643£111,072
Ealing6.81.0£1,413£95,524
Lambeth6.81.0£1,420£95,992
Hammersmith and Fulham6.90.6£1,284£86,788
Portsmouth7.01.5£1,067£72,124
Tameside7.11.5£1,392£94,120
Harrow7.22.0£1,263£85,384
Havering7.32.1£1,447£97,812
Redbridge7.32.4£1,290£87,204
St Helens7.32.2£1,275£86,216
Greenwich7.41.5£1,867£126,204
Wigan7.41.7£1,348£91,104
Bexley7.51.3£1,502£101,556
Merton7.51.7£1,602£108,316
Leicestershire7.52.2£1,318£89,076
Waltham Forest7.61.7£1,287£86,996
Dudley7.72.8£1,338£90,428
Bolton7.72.0£1,381£93,340
Sutton8.13.2£1,231£83,200
Hillingdon8.21.5£1,449£97,968
Islington8.20.8£1,594£107,744
Walsall8.22.4£1,087£73,476
Salford8.21.6£1,312£88,712
Isle of Wight8.34.5£1,192£80,600
Richmond upon Thames8.42.3£1,453£98,228
Coventry8.51.9£1,268£85,696
Cheshire West and Chester8.52.3£1,476£99,788

Self-funder estimate = council rate x 1.30 x 52 weeks.

Frequently asked questions

Do areas with fewer care-home beds charge more?
Areas in the bottom quartile for beds per 100 residents aged 75+ pay an average of £1,369/week, which is 2% less than the top quartile (£1,390/week). Pearson r between supply and cost is 0.073. Cost is confounded by London and South East land and labour costs — low supply does not mechanically cause high prices.
Why not use homes per capita?
Care homes vary hugely in size — a 6-bed residential home and a 120-bed nursing village both count as "one home" on a simple count. And total population dilutes the denominator with residents too young to drive demand. Beds per 100 aged 75+ is the public-health standard (OHID Fingertips indicator 92490).
How can I find the lower-cost care?
TreatCompare does not recommend specific providers. Check your local authority's published residential care rates via NHS England ASC-FR data, and use the CQC care directory at cqc.org.uk to find registered homes near you. Council-funded rates are typically 20-40% lower than self-funder rates.

Data sources: CQC Care Directory (OGL v3.0) for active locations and bed counts; ONS 2022 mid-year estimates for 75+ denominators; NHS England ASC-FR for weekly unit costs. See the full methodology.