Long term care is still looking rosy


Posted on June 1st, by editor in Caring Times. No Comments

Long term care remains exceptionally popular with both existing operators and new investors attracted by the relatively high returns, perceived recession-proof trading and property backed business. With few operators selling, prices have been pushed into new territory. For two to three years, operators and banks have been questioning how much longer values can continue to rise, or even stay at current levels, but this has not stopped values moving upwards. The question now is whether current values are sustainable, or could even increase further. We believe that the key issues for investors and banks to consider are as follows: # *Government funding restrictions* Between 2001 and 2006, Gordon Brown increased public spending massively. This resulted in bigger Social Service budgets, above inflation fee increases and more placements. This was behind much of the growth in the care home sector during these years. Unfortunately the lid is very much on public spending now and while the Government’s budget deficit





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