Christie Finance highlights favourable lending conditions for pharmacies in the 2025 Pharmacy Market Review
Specialist business property adviser, Christie & Co, has released its 'Pharmacy Market Review 2025' which analyses a range of topics relating to the UK pharmacy business market, including market composition, employment challenges, dispensing and services activity, the appetite of banks to lend within the sector, and an extensive sentiment survey of pharmacy professionals.
THE FINANCE LANDSCAPE: SECURED LENDING
The UK’s macroeconomic environment in 2024/25 has shown increasing stability, creating a more favourable backdrop for commercial lending within the pharmacy sector.
A notable shift includes the Bank of England Base Rate reducing from 5.25% to 4.0%, with predictions indicating a further potential drop to 3.75% by the end of 2025. This has contributed to improved affordability for borrowers and slightly reduced finance costs across the market.
The pharmacy sector has not been immune to the impact of UK budgetary measures. Increases in the National Living Wage and Employers’ National Insurance contributions are expected to affect future profit and loss performance.
Nevertheless, the introduction of the 2024/25 Community Pharmacy Contractual Framework has provided some relief. Whilst many stakeholders believe the framework does not fully address the sector’s rising operational costs, it is at least anticipated to offset these rising costs and have the potential for additional bottomline profit for an average performing pharmacy.
Data from Christie Finance’s activity between 2021 and 2025 illustrates a strong and growing pharmacy acquisition market. The number of funded pharmacy transactions completed by Christie Finance in 2024/25 remained consistent year-on-year.
However, as shown in the graph, debt value on new transactions instructed increased by 28% from 2021 to 2025, and the average individual deal size increased by 40% over the same period. This reflects strong ongoing buyer demand, a trend towards larger loan facilities and ongoing lender confidence in the sector.
To read the full report, click here: https://www.christie.com/news-resources/press-releases/pharmacy-market-review-2025-press-release/