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. 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. 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. Servicing such high
fixed returns could squeeze funds available for providing the actual care. Residents
could also have to move if the care homes failed to pay their debts to
investors and were forced to close. Read more on the BIJ website.
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