Luxury care homes: what you get for the price

A luxury care home typically offers larger rooms, hotel-style dining and extra facilities, but a high fee does not tell you the quality of care. Luxury is a marketing term, not a category in the care home register. The quality of care is shown by the CQC rating and inspection report, not by the fee.

At a glance

• “Luxury” has no legal or regulatory definition. CQC registers care homes as residential or nursing homes.
• Premium homes typically add space, hospitality and amenities. The care itself is regulated in the same way.
• CQC’s 2025/26 analysis found 70% of care homes assessed under its current framework were good (67%) or outstanding (3%).
• CQC’s ratings analysis is broken down by region, size and service type, not by fee level.
• Ask for a full written fee breakdown, including extras, before signing any contract.

What do luxury care homes typically offer?

There is no standard list, because the label is chosen by the operator. In practice, homes that market themselves as premium commonly offer some of the following:

• Larger rooms, often with en-suite wet rooms and better furnishings
• Restaurant-style dining, a chef-led menu and a choice at each meal
• Communal facilities such as a cinema room, cafe, bar, salon or spa area
• Landscaped gardens, terraces and well-kept grounds
• A concierge-style reception and a higher level of hospitality

These are things you can see on a visit. Whether they matter to your relative is a personal judgement. A resident who loves gardening or enjoys dining out may value them, while another may care more about a small, calm home. Our guide to why care homes are so expensive explains where fee money goes in general.

What does a CQC rating actually measure?

CQC rates care homes as outstanding, good, requires improvement or inadequate, against five key questions: is the service safe, effective, caring, responsive and well-led. It looks at what happens for residents, including whether the environment is safe: how staff treat people, whether care is personal, and whether leaders run the service well. The ratings concern how people are cared for and how the service is run, rather than how impressive a building looks.

In State of Care 2025/26, CQC reported on 3,783 care homes assessed under its current framework by August 2026. Of those, 67% were good and 3% outstanding, 27% required improvement and 3% were inadequate. Leadership was the weakest area: about a third were rated requires improvement (31%) or inadequate (3%) for being well-led. Read our guide to CQC ratings explained and how to read a CQC inspection report.

Is a higher price a sign of better care?

Not on its own. The CQC analysis we read breaks ratings down by region, size of home and type of service, not by what residents pay. We are not aware of national figures showing that dearer homes are rated higher, so look at each home’s own report instead.

Some of what CQC does report cuts against assumptions about size and style. In every region except London, a higher proportion of large care homes (50 or more beds) assessed under the current framework were rated good or outstanding than medium-sized ones, while small homes received the best ratings. A premium fee can come with a big, impressive building, but a smaller home may deliver more personal care. Ratings also vary by area: in the South West 82% of assessed homes were good or outstanding, against 59% in the North West.

Also check how old a rating is, because a good rating from years ago may no longer reflect the home. See how old are care home ratings.

What should I ask about fees and extras?

Premium homes may charge more for add-ons, so get everything in writing. The Competition and Markets Authority’s 2017 care homes market study listed problems it found in the sector: no indicative prices on websites, contracts not given in good time, large upfront fees and deposits, wide discretion to raise fees after a resident moves in, fees charged for an extended period after a death, and discretion to ask residents to leave at short notice. Care home residents are covered by consumer law like anyone else.

Our guide to care home contracts shows what to look for before you sign.

Can a council-funded resident live in a luxury care home?

Sometimes. If the council arranges your care, you have a right to choose a home, provided it is suitable, available, willing to contract at the council’s rate and does not cost more than your personal budget. If you choose a dearer home, a third party can usually pay the difference as a top-up under a written agreement. The council must not ask for a top-up because it lacks an affordable option. See care home top-up fees.

In a nursing home, the NHS pays a flat contribution towards registered nursing care whatever the fee: £267.68 a week at the standard rate from 1 April 2026. It is a flat contribution, so ask how it appears on the invoice. Our FNC rates guide has the detail.

How do I judge a premium home on a visit?

Look past the lobby. Spend time in the lounge and corridors, watch how staff talk to residents, and ask to see a bedroom that is not the show room. Ask how many staff are on shift, how long the manager has been in post and what activities happened this week. Our questions to ask when visiting a care home is a ready list. If the home is expensive, you are entitled to detailed answers on staffing, training and who owns the business.

Frequently asked questions

Is there an official definition of a luxury care home?

No. CQC registers care homes by service type, such as residential or nursing, and by the specialist needs they serve. “Luxury” is a description chosen by the operator, so judge a home by its rating, inspection report and what you see on a visit.

Do luxury care homes get better CQC ratings?

Not automatically. CQC’s published analysis groups homes by region, size and type of service, not by fee. A high fee does not guarantee a good rating, and a modest fee does not mean poor care, so read each inspection report.

Can I use NHS or council funding in a luxury home?

NHS-funded nursing care applies in nursing homes whatever the fee. Council funding is limited to the personal budget, so the difference is a top-up, which a third party can pay under a written agreement. The council cannot demand one if it has no affordable option.

What extra costs should I expect?

Ask for a written list. Extras commonly include hairdressing, outings, newspapers and some therapies, but practice varies. The CMA’s study criticised homes that did not give clear pricing, so insist on a full breakdown before you sign.

Where to get help next

Compare homes on the same basis with our comparison tool, search by area through Find care, and estimate what you would pay with the care cost calculator. Local fee levels are covered in care home fees by region.

Sources

• CQC: State of Care 2025/26, adult social care ratings
• CQC: State of Care 2025/26, consolidation of the care home market
• CMA: Care homes market study, summary of final report
• GOV.UK: Care and Support Statutory Guidance, Annex A

Reviewed by The Care Panel team on 9 November 2026. This guide is general information about care in England, not legal, medical or financial advice. Rules and rates change; check with your council or an adviser before making decisions.