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Nov 7

Can investment in the sector save the future of UK care homes?

Posted by at 11:19 | Default | Comments(1) | Reads(998)

UK care homes are facing an uncertain future. According to investigations by the Observer, the rising cost of care means that up to 50% of care homes could face closure.Many local authorities have suffered funding cuts in excess of 40% since 2010 however, the shortfall between what local councils can pay and the actual cost of care is widening.
The Local Government Association has stated that the shortfall could be as high a £2.9 billion by the end of 2020.The rise of the minimum wage will no doubt contribute to a reduction in the amount of care which is available to those in need.
“There has been a longstanding gap in funding for social care and this will become much more severe if there is not adequate recognition of the rising costs the sector will face as a result of the living wage. Otherwise, we will see more care providers pulling out of the sector,” Wollaston, a former GP told the Guardian.
In a time when the UK’s elderly population continues to grow, mounting pressure on already strained healthcare sector is something that must be addressed.

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Caring for an elderly population

A poll conducted by YouGov for Health+Care and Commissioning has revealed that the general public believe that NHS commissioners should make ‘care for the elderly’ a priority. 57% of those surveyed believe that care for the elderly should be the main focus of the NHS over the next 5 years.
Commenting on the research at a recent conference, Professor Martin Green, Chief Executive of Care England said:
‘It is hugely reassuring that the general public view care of the elderly as a priority, which is too often swept aside as a Cinderella service – one of our main challenges as a country is an ageing population living with one or many long-term conditions. Their dignity and quality of life remains our absolute priority. All new governments set increasing expectations for the health and social care system and the current administration will do this against the backdrop of austerity. The most important thing for commissioners to know, is how to work smarter not harder, in order to deliver a high quality and sustainable service. My priority is to look at the potential of residential care services to deliver flexible high quality care for people with long-term conditions, and I will challenge commissioners and providers to deliver quality care while still saving money.’

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Building a better future

With the amount of people aged 85 and over set to double over the next 20 years, something must be done to ensure that people are properly cared for later in life.
The Institute for Sustainable Construction estimates that the United Kingdom will need to build over 15,500 care developments by 2035.
To meet this target, an additional 780 facilities would need to be built per year however, with the average cost of £5 million per care home, around £4 billion would need to be pumped into the sector per year.
With over 15,500 new developments needed to accommodate the UK’s rising elderly population, the big question is where the annual £4 billion of investment will come from?

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Care home investments

Property investors may hold the key to unlocking better care in the UK.
Funded by individual investors, specialist new-build care home investments could provide the much needed money to build facilities. Similar to an off plan buy-to-let structure, investors would receive a rental yield from their individual room within a development upon completion. The development would remain managed by a specialist care company which would allow the ‘silent’ investor to generate an income from the room within the project.This option would create an incentive for investment in the sector and will help raise the £4 billion required per year to build much needed healthcare property.
It is yet to be decided who will foot the bill for rising cost of care in the UK however, there is a clear need for funding from both the government and private investors for the sector to be overhauled for the better.


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Mike
2019/09/03 18:54
You have written very informative article about residential homes.I have got useful information which i like reading.Keep up your good work.
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