Risk of ‘bargain basement’ Devon care home sale
Devon’s care homes could be sold off ‘on the cheap’ and became a speculators bonanza in the depressed property market after Devon County Council confirmed it may not achieve market values for the homes it wants to dispose of.
Councillors on the Conservative controlled authority were told “It is possible that bid prices will be lower than the market values”, in a report from the county’s officers.
This raises fears that homes could be bought cheaply and then possibly closed down by the purchasers as they seek to capitalise on the investment potential of either the home or the land around it, say Devon’s Liberal Democrats.
The Conservatives plan to advertise Devon’s care homes, which cater for some of our most vulnerable residents, throughout Europe.
Local councillor Alan Connett says:“One of the problems we can see is that Devon residents and those being cared for are taking a risk too. They are taking a risk that the home they live in and serving the local community will continue running.”
During the county’s Cabinet meeting on 13 January it was revealed that legal restrictions would be imposed on any sale which meant the homes, when sold, could only be used for care purposes and that they would have to stay open.
However, Liberal Democrats are questioning whether those planned safeguards will actually work. There can be a very wide interpretation of ‘care services’ and despite a legal agreement to stay open. What happens if a home closes because of financial or other serious problems.
How will the interests of Devon people be protected? Will the covenants the Conservatives say they will include in any sale do the job or would it be better to have formal ‘claw-backs’ in place so that if a home closes or is developed the interests of residents and Devon taxpayers are better protected.
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