CMA Challenges Welltower’s 600-Care-Home Takeover As UK Watchdog Warns Elderly Residents Could Face Higher Prices

The UK’s Competition and Markets Authority is proposing to accept remedies offered after raising competition concerns over Welltower’s purchase of more than 600 care homes across the country.

The watchdog’s initial investigation found that the deal could reduce competition in 30 local areas across England and Scotland, potentially affecting prices, choice and care quality for elderly residents.

Welltower’s Purchase Put Hundreds Of Sites Under Review

Welltower, a US-based real estate investment trust, became the owner of four portfolios of care home properties in October 2025.

The homes had previously been owned and operated by Barchester Healthcare, HC-One, Aria Care, including Asprey, and Danforth Care.

As part of the transaction, new operators took over the day-to-day management of the homes, including Care UK and Apex Healthcare Properties through Barchester Healthcare.

Competition Concerns Found In 30 Local Areas

During its phase 1 investigation, the CMA examined the potential effects of the transaction on nursing and residential care services for older people.

The regulator found that in some areas, either Welltower or one of the care home operators could hold a significant share of local care home provision.

The CMA said this raised concerns that residents and families could face higher prices or lower service quality if competition weakened.

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Remedies Include Property Sales And Operator Changes

To address the concerns, Welltower has offered to sell ownership of a number of care home properties in affected areas.

For other homes, the company has proposed reallocating operations to a new operator, a move intended to preserve local competition without blocking the wider transaction.

CMA Says Proposal Could Resolve Concerns

The CMA said it believes the proposed remedies may be enough to address the competition issues identified in the investigation.

The watchdog will now consult on the remedies package and on potential purchasers before making a final decision.

Older Residents And Families At Centre Of Review

Sorcha O’Carroll, Senior Director of Mergers at the CMA, said competition among care providers is important because families need access to good care at fair prices.

She said the watchdog had concerns that Welltower’s acquisition of more than 600 sites could create local competition problems but added that the offered solution may allow the deal to proceed while protecting competition.

Impact and Consequences

If accepted, the remedies could allow Welltower’s care home acquisition to move forward while forcing changes in areas where the CMA believes competition may be weakened.

The case may also send a wider message to investors and operators in the UK care sector that large property acquisitions will be closely examined where they affect local choice, service quality or pricing for elderly care.

For residents and families, the outcome could influence the number of competing care home options available in certain communities.

What’s next?

The CMA will publish more detail on the proposed remedies and consult on both the package and potential purchasers.

A final decision will depend on whether the watchdog is satisfied that the proposed property sales and operator reallocations are enough to protect competition in the 30 affected local areas.

Summary

The CMA is proposing to accept remedies from Welltower after its purchase of more than 600 UK care homes raised competition concerns in 30 local areas.

The proposed solution includes selling some care home properties and transferring operations at others to new operators.

Bulleted Takeaways:

• The CMA investigated Welltower’s purchase of more than 600 UK care homes.
• Competition concerns were identified in 30 local areas across England and Scotland.
• The watchdog warned the deal could lead to higher prices or lower care quality.
• Welltower has offered to sell some care home properties.
• Some care homes may also be transferred to new operators.
• The CMA will consult on the remedies before making a final decision.