Care Home Cost vs Supply UK 2026 — Do Fewer Homes Mean Higher Prices?
Analysis of the relationship between care home availability and pricing across English local authorities. This page splits LAs into quartiles by care home density (homes per 10,000 residents) and compares average costs in each group.
Methodology
Local authorities are ranked by care home density (CQC-registered homes per 10,000 population) and split into four equal groups. For each quartile, the average weekly residential care cost is computed from NHS England ASC-FR data. Only LAs with both care home count data and published cost data are included (109 LAs in total).
Cost by care home density quartile
| Quartile | Homes per 10k range | Avg weekly cost | Avg annual cost | LAs |
|---|---|---|---|---|
| Bottom quartile (fewest homes) | 0.3 – 1.7 | £1,378 | £71,656 | 28 |
| Second quartile | 1.7 – 2.5 | £1,356 | £70,512 | 28 |
| Third quartile | 2.5 – 3.1 | £1,408 | £73,216 | 28 |
| Top quartile (most homes) | 3.1 – 5.2 | £1,405 | £73,060 | 25 |
Council rates from NHS England ASC-FR for residential care. Only LAs with both CQC care home data and published cost data are included. Annual cost = weekly x 52.
Key finding
Areas in the bottom quartile for care home density pay £1,378/week on average — 2% less than areas in the top quartile (£1,405/week). That translates to a difference of £1,404 per year at council rates.
Local authorities by care home density (top 40 with lowest density)
Local authorities with the fewest care homes per 10,000 residents, showing corresponding residential care costs. Only LAs with published cost data are included.
| Local authority | Homes per 10k | Weekly cost | Annual self-funder est. |
|---|---|---|---|
| Tower Hamlets | 0.3 | £1,415 | £95,680 |
| Westminster | 0.4 | £1,591 | £107,536 |
| Southwark | 0.5 | £1,190 | £80,444 |
| Hackney | 0.5 | £1,246 | £84,240 |
| Camden | 0.6 | £1,392 | £94,120 |
| Hammersmith and Fulham | 0.6 | £1,284 | £86,788 |
| Newham | 0.7 | £1,249 | £84,448 |
| Wandsworth | 0.8 | £1,918 | £129,636 |
| Islington | 0.8 | £1,594 | £107,744 |
| Kensington and Chelsea | 0.8 | £1,422 | £96,148 |
| Haringey | 0.9 | £1,202 | £81,276 |
| Ealing | 1 | £1,413 | £95,524 |
| Lambeth | 1.1 | £1,420 | £95,992 |
| Hounslow | 1.1 | £1,633 | £110,396 |
| Barking and Dagenham | 1.1 | £1,347 | £91,052 |
| Bexley | 1.3 | £1,502 | £101,556 |
| Brent | 1.4 | £1,174 | £79,352 |
| Manchester | 1.5 | £1,078 | £72,852 |
| Hillingdon | 1.5 | £1,449 | £97,968 |
| Greenwich | 1.5 | £1,867 | £126,204 |
| Tameside | 1.5 | £1,392 | £94,120 |
| Portsmouth | 1.5 | £1,067 | £72,124 |
| Bromley | 1.6 | £1,129 | £76,336 |
| Salford | 1.6 | £1,312 | £88,712 |
| Liverpool | 1.7 | £1,222 | £82,628 |
| Wigan | 1.7 | £1,348 | £91,104 |
| Lewisham | 1.7 | £1,213 | £82,004 |
| Milton Keynes | 1.7 | £1,507 | £101,868 |
| Waltham Forest | 1.7 | £1,287 | £86,996 |
| Merton | 1.7 | £1,602 | £108,316 |
| Reading | 1.8 | £1,259 | £85,124 |
| Leeds | 1.9 | £1,314 | £88,816 |
| Sheffield | 1.9 | £1,167 | £78,884 |
| Bradford | 1.9 | £1,294 | £87,464 |
| Coventry | 1.9 | £1,268 | £85,696 |
| Southampton | 1.9 | £1,224 | £82,732 |
| Peterborough | 1.9 | £1,325 | £89,596 |
| Oxfordshire | 2 | £1,356 | £91,676 |
| Cambridgeshire | 2 | £1,579 | £106,756 |
| Barnet | 2 | £1,359 | £91,884 |
Self-funder estimate = council rate x 1.30 x 52 weeks. Sorted by homes per 10,000 population, ascending (fewest homes first).
Frequently asked questions
Do areas with fewer care homes charge more?
Why do care costs vary by area?
How can I find the cheapest care?
Related articles
Data source: CQC Care Directory for care home counts per local authority. NHS England Adult Social Care Activity and Finance Report (ASC-FR) for residential care unit costs. Population data from ONS mid-year estimates. Published under the Open Government Licence v3.0.