The funding appetite in the dental sector continues to demonstrate strong resilience, reports Christie Finance in Dental Market Review 2025

The dental sector continues to demonstrate strong resilience and attractiveness within the funding market. It remains a ‘green light sector’ for banks and lenders, and 2024/2025 has seen intensified competition in the lending landscape.

As specialist lenders innovate and recalibrate their offerings to match or exceed market leaders, borrowers, particularly first-time buyers and expanding operators are increasingly benefiting from favourable lending terms, including higher loan-to-value (LTV) ratios, reduced rates, and flexible structuring.

The Bank of England’s base rate reduction, from 5.25% in August 2024 to 4.25% in mid-2025, has improved affordability and borrowing appetite across the sector. This is especially impactful in asset-heavy acquisitions such as those involving practice freeholds or multi-site expansions. We have secured interest rates as low as 1.49% above Bank of England Base Rate, and the average margin across the sector is 2.02% above Bank of England Base Rate.

There has been a sustained shift towards first-time buyers acquiring practices, often Associates moving into ownership.

A noticeable trend in 2024/2025 is the increased preference for private practices, as buyers look to avoid the complex compliance environment that accompanies NHS contracts. Private practice ownership offers more autonomy, flexibility in service offerings, and improved profitability in many cases.

Looking ahead, the influence of advanced technologies, including robotics, AI diagnostics, and 3D printing is poised to reshape the clinical and operational landscape. Practices that adopt and invest in tech-led innovations are likely to see increased valuation potential and may also attract better funding packages as lenders recognise long-term sustainability and efficiency gains.

The lending market remains exceptionally positive, with more lenders vying for market share. This competitive climate has significantly improved the terms available to borrowers. Lenders are increasingly open to higher LTVs, longer interest only periods, and accommodating structures that support new entrants and scaling
groups.

To read the full report, click here: https://www.christie.com/news-resources/publications/dental-market-review-2025/ 

To discuss funding for your business, get in touch:

Stephen McConalogue
Associate Director
T: +44 (0) 7590 488 475
E: stephen.mcconalogue@christiefinance.com