The care home sector is highly regulated, and investing in this market requires careful planning. With the population aged over 85 expected to double over the next 25 years, demand for care home places is set to increase creating opportunities for strong returns. However, success in this sector depends on understanding the regulatory requirements and operational challenges involved.
Not Everyone Can Own a Care Home
Ownership of a care home is subject to strict rules to ensure high standards of care. All prospective owners must be registered with the Care Quality Commission (CQC). This process is more than a simple formality; it requires demonstrating a genuine commitment to elderly care, along with the necessary skills and experience to manage staff, finances, and day-to-day operations effectively.
Required Personnel
If your CQC application is approved, you must establish your legal entity as either an individual, partnership, or organisation. Organisations and partnerships must also appoint a nominated individual to act as the care provider.
Every care home must have a dedicated manager with the required qualifications and experience. This includes at least NVQ Level 4 in Care and Management and twoyears of senior care management experience. In addition, at least 50% of staff must hold NVQ Level 2 qualifications.
Recruiting and retaining high-quality staff can be challenging, as the care sector experiences high turnover. Maintaining the required staffing levels is critical for compliance and smooth operations.
Finding the Right Property
Care homes have specific property requirements. Premises must meet minimum standards for floor space, communal areas, ceiling heights, ensuite facilities, catering, laundering, and health and safety.
If purchasing an existing care home, due diligence is essential to ensure the property meets regulatory standards. For new builds or conversions, location is key the property should have good access to towns and local facilities to attract residents. Freehold properties are generally preferred over leasehold to provide greater security and control.
Get Expert Advice
Buying a care home is a significant investment that requires detailed knowledge of regulations and operational requirements. Seeking advice from a specialist care home solicitor early in the process can help you avoid costly mistakes and ensure your purchase is suitable for your business goals.
For more information or for expert advice on business or personal legal issues, contact us by email at info@carterbond.co.uk or call us on 020 3475 6751.
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