The further families have to travel, the higher the cost for funeral directors in terms of time, and the more inconvenient it becomes for grieving families. Additionally, many individuals have deep family ties to specific locations, making the need for a nearby facility even more pressing. As part of a “needs” assessment, convenient and accessible crematorium services is therefore a priority for communities, especially if there is no facility within the local council district.
Crematoria developers typically identify areas of need based on extended wait times for service slots and the challenges faced by families traveling long distances. Similarly, for cemeteries, the growing shortage of burial space becomes a clear sign that a new site may be required to meet future needs.
However, the process of finding suitable land for new crematoria and cemeteries is governed by a specific law: it’s prohibited for crematoria and cemeteries to be located directly adjacent to residential properties. This means that new sites tend to be found on the outskirts of towns and cities, often within Greenbelt land, which is typically protected from development. In the case of crematoria, the demonstrated need can make development in these areas viable, whereas for other uses, such as housing, Greenbelt development is restricted.
We don’t often see new crematoria developments. Since 2013, between three and 12 new crematoria have opened in the UK each year, the majority of which are developed by private sector operators. As for cemeteries, there is less visibility on the frequency of new developments. While comprehensive national statistics are unavailable, it’s likely that only a small number of new cemeteries are established annually, with many being extensions to existing local authority-run sites.
In the UK, around 40% of crematoria are privately operated, while 60% are run by local authorities. The private sector has seen the most growth over the past decade, often filling gaps in demand where existing facilities are seeing a high volume of service requests. Private crematoria are typically more modern, with the availability of longer service times seen as a positive by funeral directors and the public alike. More recently, local authorities and regional funeral director companies have also begun investing in new developments.
When it comes to burial grounds, the situation is somewhat different. Burial grounds remain predominantly under the management of local authorities, although there has been some private sector interest, particularly from agricultural landowners diversifying into natural burial options or faith groups acquiring land for their communities. A few developers have also purchased land on the outskirts of large urban areas for potential cemetery use.
We anticipate that the crematoria sector will continue to see a gradual shift in market share from local authorities to private operators. However, this market is inherently limited in its ability to predict growth, as any expansion expected in this market will primarily come from the organic increase in demand due to population dynamics and rising death rates.
While there’s likely to be continued development activity in both the private sector and from local authorities, it’s expected that the overall numbers of crematoria and cemeteries will grow slowly over time, until construction no longer proves financially viable. We foresee a continued shift towards cremations and a corresponding decline in burials, although local authorities will remain the main providers of cemetery spaces, particularly through land acquisition for future cemetery extensions.