News
Care home sales prices rise 5.4 per cent in 2021 on strong demand – Christie & Co
Care home sale prices rose by 5.4 per cent in 2021 due to competitive demand for purpose- built properties, according to brokers Christie & Co.
The London outfit’s Christie’s Business Outlook 2022 report notes strong demand coupled with a general shortage of available stock has led to a positive movement in pricing.
This has been most pronounced at the top end of the market, particularly for prime platform opportunities, development sites and investments. Many operators continued with
development site acquisitions in 2021, fulfilling strategic long-term objectives to futureproof the quality of their asset base. However, labour shortages and global supply chain issues, compounded by Covid-19, led to rising labour costs and construction material shortages.
Christie & Co care managing director Richard Lunn (pictured) told The Care Home Environment that the build cost of new care home excluding land has risen from around £100-110,000 per bed to around £120-150,000 per bed depending on quality and geography. Land availability in locations with compelling underlying demographics remains scarce and securing planning permission continues to be a highly protracted, costly, and uncertain process. Consequently, land values for sites with planning permission have continued to increase at a steady rate and demand is likely to remain robust for the foreseeable future. Lunn said Christie’s completed over 150 care transactions in 2021 covering more than
ROAR B2B launches UK Care Week show in July
Exhibition organiser ROAR B2B has launched UK Care Week, a new show that replaces the Dementia, Care & Nursing Home Expo. The two-day UK Care Week event will take place on 6 and 7 July at the Birmingham NEC. ROAR B2B said it has been working to create a “game-changing event that unites the care sector and drives change”. UK Care Week will provide a platform to
connect, network and raise the profile of care professionals across the UK, it added. The show promises to be packed
with industry-defining content, live product 10
demonstrations and interactive features to equip delegates with the skills and knowledge to improve their quality of care. “Think of this exhibition as your ‘one- stop’ destination for everything to do with care – whether you’re looking for care innovation, dementia support and first-hand understanding, or training and recruitment, UK Care Week covers it all,” said ROAR B2B.
BUPA ordered to pay record £1m fine after South London fire death
BUPA has been ordered to pay a record £1.04m after a resident died in a fire while smoking at one of its care homes. BUPA Care Services (ANS) Ltd was
fined £937,500 for fire safety failings and ordered to pay £104,000 prosecution costs at Southwark Crown Court on 5 January, the highest ever fine for fire safety breaches in the UK.
London Fire Brigade brought the
200 properties - a rise of 14 per cent on 2020. On average, care homes for sale achieved 95 per cent of the quoted asking price. Christie & Co also reports a 56 per cent increase in the average number of offerees per sale between 2017 to 2021. There is also evidence of decreased distress in the market, it said. Of the deals Christie & Co managed over recent years, 18 per cent included distressed businesses in 2019, 13 per cent in 2020 and just 8 per cent in 2021. Looking ahead, Christie & Co expects steady yield compression fuelled by strong demand from capital and limited stock availability. There is also significant activity from UK and international sector specialist investors that is driving the upper secondary market. An increasing number of operators are
now considering lease agreements, often within the context of new build development assets.
Rents for such assets are linked to mature
trading potential and the covenant strength of the operator with a typical range, based on Christie & Co activity, being in the order of £10k to £14k per bed.
prosecution against BUPA after it was called to the blaze at the Manley Court care home on John Williams Close in Brockley in March 2016. Cedric Skyers, a 69-year-old wheelchair user at the home, died in a fire while smoking unsupervised in a shelter in the garden of the home. A subsequent investigation found that although a smoking risk assessment had been carried out for Skyers, it did not assess his use of emollient creams, which can be flammable if allowed to build up on skin, clothing or bedding.
Additionally, apparent burn marks
indicative of previous incidents were found on Skyers’ clothing after his death, something which care home staff said they had not been aware of. They said that if they had been, they would have ensured more regular checks were made when he was smoking. BUPA pleaded guilty to contravening
Article 11 (1), which relates to the management of fire safety measures. Specifically, it accepted that it had
failed to ensure staff understood the risks from the use of emollient creams; warn residents using paraffin-based products not to smoke, or, require precautions to be taken such as the use of a smock or apron; instruct staff not to leave a resident using paraffin-based products smoking unsupervised; and carry out an individual smoking risk assessment of the resident as normal with the control measures in place. “If there can be anything constructive to come from this, we hope that it will be that anyone who has a legal responsibility for fire safety in a building takes note and makes sure they are complying with the law,” said London Fire Brigade assistant commissioner Paul Jennings.
www.thecarehomeenvironment.com February 2022
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