For groups and individuals alike, understanding of the current in the UK dental market, across private, mixed, and NHS practices remains essential when making informed decisions. With interest rates now slightly lower than what they were a couple of years ago, market confidence has begun to improve.
Taking into account the experiences of practice owners over the past year, alongside projections for the year ahead, we explore what these changes may mean for buyers and sellers across the sector.
The landscape over the last year
In 2025, we saw some hesitation by sellers of NHS practices considering bringing their practices to market. This was driven by several factors, including negative press coverage, wider economic uncertainty and anticipated changes of capital gains tax. As a result, some vendors questioned whether they would be able to maximise value on exit.
More recently, however, owners of NHS practices have now seen a number of positive changes – including the softening of recruitment pressures and greater stabilisation of UDA rates. Compared to the 12-18 months prior, operating an NHS practice has become more manageable.
As such, we anticipate increased activity within the NHS practice market over the coming year. Combined with improved lending conditions and continued demand from individual dentists, transaction levels are likely to rise, particularly in areas where recruitment is less of a challenge, such as London, Manchester, Birmingham, and Liverpool.
The impact NHS contract changes
When assessing NHS contracts in dentistry, it’s helpful to consider both the percentage uplifts they’ve had and recent contractual changes. These changes have made it easier for practices to achieve UDA targets compared to previous years.
In practical terms, this allows practices to generate improved income outcomes for a similar, or in some cases reduced, level of clinical activity. Many practices are now being awarded more UDAs relative to workload than at the same point last year.
Practices brought to market previously while underperforming against UDA targets often faced valuation challenges. Buyers and lenders were understandably cautious due to the risk of breach notices or potential contract loss.
By contrast, NHS practices entering the market today are typically operating with greater confidence in meeting contractual obligations. As a result, NHS and mixed practices are likely to be received more positively by buyers, supporting stronger pricing across the sector.
Groups, NHS, and private: who’s coming out on top?
Overall, in the group market – with Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) above £200,000 – private and mixed practices are still king.
However, the independent market is going from strength to strength – especially for NHS dental practices. NHS contracts offer predictable income security, which lenders often view favourable when compared with purely private goodwill that may rely heavily on an individual principal.
While private practices may achieve higher EBITDA multiples, this does not automatically translate into stronger profitability. Associate remuneration in private dentistry typically sits between 45 and 50 percent of income, alongside increased laboratory and material costs.
Consequently, some of the most profitable opportunities remain high-performing NHS practices with strong UDA rates, where associate costs may sit closer to 30 to 32 percent. Practices operating with around 10,000 UDAs and limited private income continue to attract strong buyer interest, as purchasers recognise the opportunity to introduce private revenue and create additional value post-acquisition.
Support when you need it
In a competitive and evolving marketplace, having experienced advisers with a detailed understanding of the dental sector can make a significant difference.
With specialist teams across practice sales, acquisitions, recruitment and finance, Dental Elite combines market insight with transactional experience to support clients in achieving the best possible outcome for their circumstances.
Market outlook
Looking ahead to 2026, we expect larger groups to re-enter the market more actively, although competition from independent buyers seeking value opportunities may limit rapid expansion.
At the same time, NHS practices are expected to continue growing in popularity, supported by improved target achievement and increased operational stability.
Author: Luke Moore, Founders and Directors of Dental Elite
For more information on Dental Elite visit www.dentalelite.co.uk, email info@dentalelite.co.uk or call 01788 545 900
