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Social landlord withdraws from care home contract after financing problems

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Social landlord withdraws from care home contract after financing problems

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Published by Max Salsbury for 24dash.com in Care and Support and also in Development, Housing, Local Government

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A major supplier of retirement housing has withdrawn from a care home project after experiencing problems securing financing.

Housing & Care 21 had originally committed to building up to 800 extra care apartments for Derbyshire County Council over two phases.

Phase 1 comprised of two care centres - one in Long Eaton with 61 apartments and one in Buxton with 54 apartments - while phase 2 would have seen around 680 apartments built in locations across Derbyshire.

However, though the housing provider remains committed to completing phase 1, it has told the council that it has to withdraw from phase 2 because it cannot secure finance from the market at a level that would "make the developments viable".

The council decided to end the second phase of the contract in April.

Bruce Moore, 21's chief executive, said: "Housing & Care 21 remains fully committed to working with Derbyshire County Council to build and operate two new Extra Care developments.

"However, we informed Derbyshire County Council that we were not able to develop a further 10 such projects without securing additional funding. We understand the reasons why Derbyshire County Council has decided to reconsider its options rather than try to find another housing association to take on the remainder of the programme."

In the wake of 21's decision to pull out of phase 2, the council’s cabinet decided to call on local people to ask them for their views on what accommodation and support services they would like to see in their area.

The council says that any future plans will place an "emphasis on supporting people to live independently in their own homes where possible and ensuring there is a good mix of residential accommodation across the county".

Cabinet member for adult social care councillor Clare Neill said: "While it is disappointing that Housing 21 withdrew from the contract, what we now have is an opportunity to take a fresh look at what is available.

"We will shortly be asking for the views of local people across the county about what they would like to see in their local areas.

"We'll also be looking to set up a group that will work closely with us on designing new proposals."

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