Care villages – a concept in crisis?
By PAUL FARMER, director, care business transactions, GVA Grimley
In buoyant and rising markets, the weaknesses and frailties of concepts can often be hidden. It is only when markets are weak or receding that these will surface. While there are a myriad of operators across the independent and not-for-profit (third?) sectors, there are some common issues for those looking to sell care properties on a long leasehold basis. Over the last 18 months the market place has seen several care village operators or their associated development companies go into receivership, leaving existing residents in limbo – residents who are by their nature either frail and dependant – or at the very least looking towards such a scheme to provide a protective environment for the latter years of their lives. The failure of such operators has meant several part-developed schemes have been left unfinished, creating a huge