![]() ![]() Think Tank the King’s Fund described the social care funding boost as “the bare minimum needed to patch up services for another year”, suggesting it is just papering over the cracks of a much deeper problem. Under the Conservative government, spending on adult social care in England has fallen by 3% since 2009/10 according to the Institute for Government.Įven if the cash injection is delivered as promised, many are in double whether it will go far to remedy the situation. Whilst Boris Johnson has pledged to invest more money in the social care sector, going off records of previous government’s investment suggests this isn’t likely to materialise. With regards to future demand, according to The Lancet more than one million more people aged 65 and over will need round-the-clock care by 2035, which is a rise of over a third.Ī budget shortfall has meant that the government is more reliant than ever on private companies, who are willing to bridge the gap as there is a sustained demand for beds. According to the Office for National Statistics, in 2016 18% of the population was aged 65 and over and in some regions as many as one in three people were over the age of 65. The ageing population has only exacerbated the funding issues. In 2018 central government gave local authorities £21.3bn for social care, less than the £22bn it gave in 2011. Britain's ageing population and underfundingīritain’s population is ageing and the government does not have the resources available to provide care for them. In a way, as an investment class, the UK care home sector provides a level of certainty of income because the rich can afford to pay – will pay – and the government subsidises those who cannot. ![]() There is a means test whereby some level of contribution will be made towards care for those who have less than £118,000. This applies to care for the elderly infirm and specialist dementia care. How does the UK government help provide for the cost of care in the UKĪt the moment, if a person living in the UK has the need for Nursing Care and they have less than £23,250 worth of personal assets, the government will cover the full cost of care. Government care to people with Dementia.Britain's ageing population and underfunding.Reasons why it is worth investing in the UK care home market Investors can achieve good returns whilst also making a difference to the community.Ĭontact One Touch Property today to learn more about investing in care home rooms. Thereby providing a vital service to the community and a high yield and truly hands-off asset for the investor.Īs Britain's population ages and the shotage of available bed spaces in care homes persists, the demand for existing beds continues to be strong. The typical leases are up to 25 years with 10% net income. The operator leases the property from the investors and conducts their business from the premises. It is a good idea to invest in a care home room because you are purchasing an existing property with a proven cash flow and no development risk (for completed properties). Our chosen developers work closely with the NHS trusts and local authorities to identify areas of significant demand and buy care homes in most under-supplied parts of the country - ensuring a buoyant market. Investors now have access to care home investment opportunities by way of a sale and lease back arrangement.
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