Slowdown in care home investment finds IPD

Healthcare and social care investments returned 7.2% yield in 2011 according to the IPD Annual Healthcare Property Index despite reforms to primary care and changes to the care home sector. But the secondary care sector, which largely consists of care homes, saw the largest slowdown in returns, off the back of falling values (-1.0%), a result of investor uncertainty as opposed to reduced demand. Estate agents Aitchison Raffety estimate that many care home operators need a 95% occupancy rate to pay their debts, but cuts in local authority budgets, which are expected to take full effect in 2012, may drive occupancy to under 90%.