With new development regularly featured in the social care media, there is a general assumption that the national care home estate is growing at a rate sufficient to meet elderly care needs in forthcoming years. Specialist care sector property advisers HPC have today published research indicating this not to be the case.
Growth in the level of England’s elderly population is significant and well documented. Yet the number of homes closing is consistently double the 100 or so being developed in England annually. Despite an average new home offering just shy of 60 beds, the HPC research indicates that the number of beds in newly registered homes is all but mirroring the number simultaneously falling out of the market. Indeed several regions are showing a net bed reduction.
Commenting on the research findings, Nigel Newton Taylor (Director of HPC) feels that the resurgent general economy is actually restricting growth of the care home estate. “The opportunity now exists for operators of unprofitable businesses to dispose of properties for alternative use or development. Whilst this has provided a lifeline to those seeking industry exit, the increased appetite amongst housebuilders has resulted in escalating land prices making care home development unviable across significant areas”.
This fascinating research is detailed in full on the HPC website www.healthcarepc.co.uk