According to the latest market update from Savills Healthcare, strong fundamentals combined with an ageing demographic in the UK has made healthcare, and in particular, care homes, a very attractive asset class.
The international real estate advisor notes that the long indexed income with either RPI or fixed uplifts have made an appealing proposition for investors struggling to find similar opportunities in the mainstream markets. In addition, care home yields have moved in significantly over the last five years and now fall in line with many other traditional commercial asset classes.
Savills healthcare team director Chris Wishart said the last 18 months had seen care homes achieve unprecedented yields with those let to annuity grade tenants and in excess of 30 years unexpired attracting interest of levels below 4%
“We expect this trend to continue with the care home market being put under … Read More »
The Competition and Markets Authority (CMA) has published the initial findings of its care homes market study, and is investigating if some homes are breaking consumer law.
Launched in December last year, the market study has examined whether the residential care homes sector is working well for elderly people and their families. Having reached the halfway point of the study, the CMA has published emerging findings and announced that, as a result of information received during this work, it has opened a consumer protection case to investigate its concerns that some care homes may be breaking consumer law. This is focused on concerns about certain care homes charging families for extended periods after a resident has died, and homes charging large upfront fees.
The initial findings of the study highlight wider concerns about the sector, which will form the focus of the … Read More »
With about 40% of residents in UK care homes having significant depressive symptoms, researchers have questioned whether the design of the physical environment of homes could be contributing to the problem, and how this could be addressed.
New research led by the University of Warwick has found that although the physical environment alone is unlikely to negatively affect the mood of residents, poor access to gardens and outdoor spaces could. Procedural, staffing and physical barriers can prevent older people using outdoor spaces and the researchers at Warwick Medical School and WMG at the University of Warwick have found that access to the outdoors is significantly associated with depressive symptoms.
There has been a growing interest in the role of the physical environment on health. An early study found that hospital patients residing in rooms with windows looking at a natural scene had … Read More »
Caring Times, June 2017
Nadra Ahmed, co-convenor of the Cavendish Coalition and chairman of the National Care Association,has welcomed a report from the House of Commons Health Committee on Brexit and health and social care.
“We are pleased to see that the committee recognises the incredible contribution our colleagues from mainland Europe and elsewhere outside the UK make throughout the health and social care sector,” said Mrs Ahmed.
“This talented and diverse group of people are essential to our ability to provide the best possible care to the people we proudly serve. The Cavendish Coalition welcomed the opportunity to provide evidence to the committee and to share our insight on the potential workforce supply issues for health and social care in the UK, arising from the UK’s departure from the EU.”
Caring Times, June 2017
Provider representative body Care England has welcomed the launch of Teaching Care Home Impact Report. This suite of reports sums up the Teaching Care Home Programme; ground-breaking, nurse-led pilots to improve the learning environment for staff working in homes, undergraduate nurse apprenticeships and all learning placements in care homes.
Professor Martin Green, chief executive of Care England says: “These pilots demonstrate that the care sector is a crucial part of the health and social care landscape. Both nurses and carers have a vital part to play in the professional nursing agenda. This initiative has fostered strong partnerships and goes some way to developing a sustainable workforce that takes pride in providing high quality, joined up care”.
The report was launched at the Care Home Parliamentary Reception in the House of Lords hosted by Baroness Greengross. Representatives from the pilot … Read More »
Under supply of retirement living accommodation in the mid to upper market tiers and increase in life expectancy is driving strong re-sale and price growth in the retirement living market, according to real estate investment advisors JLL.
Analysis was undertaken by the firm into the performance of properties in the housing with care market, managed by members of the Associated Retirement Community Operators (ARCO) over the past 22 years. This form of housing comprises self-contained units with communal facilities and on-site care. It is the fastest growing form of housing in the retirement living sector.
The key finding is that this form of retirement living accommodation tends to follow UK house price growth. Since 1995 the compound growth rate for housing with care has been 6.0%, with an average price difference between sales of just over £41,000. JLL predicts that based on … Read More »
Caring Times, April 2017
UK families say that care services for children and older people have got worse in the last five years. But they reserve their harshest criticism for care of older people, particularly home care services, according to reviews reported to Good Care Guide.
More than two-fifths of reviews of home care agencies in 2016 rated them as poor or bad for quality of service and for value for money. This is particularly worrying given government policy is for more older people to be cared for at home and supported outside hospitals or care homes. Based on an analysis of 9,000 reviews left by families on the Good Care Guide website, the latest research shows:
– In 2012 22.7% of home care agencies were rated poor or bad for quality of service by older people and their families
– by 2016 this … Read More »
Caring Times, March 2017
The Centre for Welfare Reform has published a new discussion paper outlining the systemic failures of the care regulator the Care Quality Commission (CQC) whose design makes it incapable of effectively protecting people from abuse or improving standards of care.
The author of the paper, John Burton, argues that CQC does more harm than good: “The Care Quality Commission is not effective or responsive; it doesn’t understand how social care works; it rarely uncovers neglect and abuse, and it responds too slowly when they are brought to its attention; its judgements are flawed and its ratings inaccurate and unhelpful; its inspection reports are poorly written and constructed; it costs much more than it should and imposes vast unnecessary costs on social care providers; it dominates and distorts the whole social care sector, and the organisation is blinkered, risk … Read More »
Health and social care integration has been less successful than expected, says the National Audit Office
Caring Times, March 2017
The National Audit Office has warned that progress with integration of health and social care has, to date, been slower and less successful than envisaged and has not delivered all of the expected benefits for patients, the NHS or local authorities. As a result, the Government’s plan for integrated health and social care services across England by 2020 is at significant risk.
In the face of increased demand for care and constrained finances, while the Better Care Fund, the principal integration initiative, has improved joint working, it has not yet achieved its potential. The Fund has not achieved the expected value for money, in terms of savings, outcomes for patients or reduced hospital activity, from the £5.3bn spent through the Fund in 2015-16. Nationally, the Fund did not achieve its principal financial and service targets over 2015-16, its first … Read More »
Despite increasing media attention social care ranks only as the ninth matter for concern in people’s minds, according to the latest Ipsos MORI/Economist Issues Index.
The poll shows increasing public concern with the NHS, with almost half (49%) of the British public considering it to be one of the biggest issues facing Britain. Concern has risen nine percentage points since December, and is now at the highest level recorded since April 2003.
After the NHS the public rank the following as issues of major concern (in descending priority):
Ageing population/social care