Ministers face call to regulate 'buy-to-let' care home rooms

Private investors are being enticed to purchase rooms in UK care homes on a buy-to-let basis with the promise of large profits and rental income, a Bureau investigation reveals today.
The Bureau of Investigative Journalism has found hundreds of rooms being offered for sale for as much as £85,000 each. They offer “guaranteed” rental income of around 10% annually and a total return on investment of up to 188% over 10 years.The largest player in the market is a company whose managers include a struck-off solicitor, a disqualified director and a chief executive who was once the sole director of a company that held a strip club licence – and who says his involvement in the sector will allow him to buy fast cars and diamonds for his wife.

Such buy-to-let room schemes are not regulated by the Financial Conduct Authority, while the Care Quality Commission, which oversees standards in care homes, says it does not have responsibility for providers’ financial sustainability. Read more ...