Christie & Co's Business Outlook 2023: Finding Clarity report has revealed that its dental team had its strongest year of performance on record.

Dental business completion volumes at Christie & Co rose by 23% from 2021 to 2022, and a staggering 124% from 2018 to 2022, illustrating the increasing demand for quality practices. In 2022, 150 offers were formally accepted, reflecting a 50% increase on 2021, and the aggregate offer value received rose by 48% to over £930 million. Bank valuation instructions also hit an all-time high, with a significant increase in instructions, which is anticipated to continue.

The report reveals pricing was competitive last year, with Christie & Co reporting a positive dental price index of +8.6% in 2021, a trend continued throughout 2022, with a positive price index movement of +2.2% which they commented is reflective of the core market activity and continued growth and demand within the private sector and is offset against a cooling within the NHS market.

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The business property adviser anonymously surveyed dental professionals across the UK to gather their views on the year ahead. Almost half (48%) said they felt positive going into 2023 while 26% felt neutral and negative in equal measure. When asked about their sale and acquisition plans in the year ahead, 57% of respondents said they are considering buying and/or selling in 2023.

In a segment on funding in the sector, the report noted the sheer strength of private dentistry, to the extent that lenders are now putting much less emphasis on NHS/private split. The exit of some specialist banks in 2022 allowed other healthcare lending specialists to step into the spotlight, and there is a healthy appetite for the sector as they are offering excellent terms for the right practice and owner if positioned correctly. It is important to note, however, that under the strain of the current economic market and an ongoing recruitment struggle in the sector, lenders are generally taking a more cautious approach, so are favouring more robust practices that can withstand a stressed interest rate.

Paul Graham, Head of Dental at Christie & Co, said: 'The UK economy has been struggling under the weight of high inflation and rising borrowing costs. Pair this with operational hurdles within the dental sector including reduced personnel and an NHS at breaking point, then it wouldn't have been a surprise to see a subdued or static performance last year. However, our transactional activity in the dental sector has defied these challenges and we've just achieved our strongest ever year on record.

'There is no doubt that the sector is recalibrating, but it's far from doom and gloom. At Christie & Co, we have the largest team of brokers, RICS valuers and advisory professionals in the dental sector, with market-leading data and business intelligence which allows us to be agile, proactive with market predictions and trends, and wise on how to overcome the headwinds.'