24th January 2019
Working to address the care homes crisis
A recent study predicts that demand for beds in care homes will soar by more than three quarters in less than 20 years. Almost 190,000 more people are expected to require care by 2035, against a backdrop of rising costs and funding cuts.
A key objective of Caliber is to keep its activities diversified, particularly in industries where supply is urgently required. We have always had strong links with the care sector where demand for homes and bed spaces couldn’t be higher.
Janet Morrison, chief executive at the charity Independent Age, said: “Creating over 70,000 new care home places seems to be a tall order for a care sector commonly recognised to be in crisis.”
Caroline Abrahams, charity director at Age UK, said “There will undoubtedly be a need for more accommodation with care and support for our ageing population, but in the longer term we may see this being provided more in the form of extra care housing than traditional care homes – that’s what many older people say they’d prefer.”
Over the last 25 years, I have seen the price of land for care homes rocket. Often, there are a large amount of companies battling over limited opportunities. This is mainly due to the extensive criteria required to make these sites sustainable.
The Caliber team has successfully completed on the sale of a number of care home developments. Providers we have worked with include Sunrise Senior Living and Barchester Healthcare.
We recently sold a 2-acre development in Solihull to Barchester Healthcare, which is currently under construction. This followed our typical model where land was sourced and offered to the provider on a subject-to-planning basis. This means that the purchaser is able to create their own unique scheme on the site.
The key to successfully finding these opportunities and transforming them into a fully-operational care home is complex. It involves an understanding of the planning system and the requirements and context of the care homes and residents. For example, access to public transport, planning and highways restraints and the physical need within the geographical area.
Our next exciting care development coming to market in Daventry is an 8.9-acre site with an 83-bed care home and 76 extra care apartments. Associated facilities will include a doctor’s clinic, cafe, hairdressers, crèche, shop and bar/restaurant. There will be five blocks of apartments accommodating 111 one-bedroom and 86 two-bedroom apartments, 32 two-bedroom houses and ten three-bedroom bungalows.
Below: Site plan – care development in Daventry
The new facility is helping to re-define care facilities in England. Landowners and developers are increasingly choosing our expertise and approach ahead of other agents who market the piece of land to the masses without any thought or planning, just hoping for the best.
Caliber will continue its focus on this sector in 2019. We will be sending more off-market opportunities to our developers to help to address the shortage. To find out more please get in touch.
Blog by Leon Evans, Managing Director